CGC Bond Covers 7 Alberta Oats Limited Growers

WINNIPEG - Jan 1/04 - SNS -- Seven of 10 grain producers with outstanding claims against the Edmonton-based Alberta Oats Limited will be fully covered by the bond the company had posted with the Canadian Grain Commission (CGC) to cover grower liabilities.

Alberta Oats Limited was placed in receivership August 21, 2003. At the time it was placed in receivership, producer security totaled $600,000. The bond was well in excess of the $134,145.17 claimed by the seven farmers who had not yet been paid for grain deliveries at the time the company declared bankruptcy.

Three claims, totaling $34,116.26, were ruled ineligible by the CGC. One was ineligible because a company made it, and CGC security is intended to protect farmers. The other two claims were ineligible because the grain had been delivered to the company more than 90 days before it was placed in receivership.

"Happily, most farmers were fully compensated," said CGC Chief Commissioner Chris Hamblin. "However, some were not. This underscores the importance of producers knowing and following the rules that apply to producer payment protection."

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