Sofina Foods Inc. has bought the hog-packing plant in
Mitchell that has been in bankruptcy since May 31.
It went into bankruptcy soon after its sister business,
Quality Meat Packers Ltd. in Toronto, went into bankruptcy.
Both were controlled by David Schwartz and his family.
The Mitchell plant operated as Great Lakes Specialty Meats
of Canada Inc. It was built by hog farmers Joe and Miriam Terpstra who went
bankrupt and had a couple of other owners before Schwartz took over in
September, 2009.
The next year he got a loan of nearly $4.5 million from the
federal agriculture department and $2 million from the Ontario government.
Farm Credit Canada is the largest secured creditor, holding
a loan of $5.4 million. The Royal Bank of Canada is owed $2.1 million and other
debts total $16.1 million.
Sofina owns the former Maple Leaf Foods Inc. plant in
Burlington which is the largest hog-slaughtering business in Ontario.
The bankruptcy court did not reveal how much Sofina is
paying for the 12-acre property and equipment. It did reveal that the sale is
free of liens and other debts.
The receivers say they received 81 expressions of interest
in the property, including some from farmers.
