Friday, May 1, 2015

Buyer kicking tires at Organic Meadow

The bankruptcy court has given Organic Meadow an extension to June 16 because a secret buyer wants 35 days to check the books.

The dairy cooperative is blaming the Dairy Farmers of Ontario marketing board for pushing it into seeking bankruptcy-court protection from its creditors.

The milk board put Organic Meadow on a cash-on-delivery basis after the cooperative ran up a large debt for milk purchases.

The bankruptcy court has forced suppliers, including the milk board, to keep on doing business with the cooperative while it is in bankruptcy protection seeking a way out of its dire financial straits.