Heartland Pork Seeks Bankruptcy Protection

REGINA - Apr 13/04 - SNS -- Heartland Pork Management Services, together with three wholly owned hog operations, are seeking temporary bankruptcy protection under the Companies' Creditors Arrangement Act (CCAA), according to the Saskatchewan Wheat Pool.

The Pool announced several weeks ago that it was planning to exit the hog industry and was pursuing divestiture options. Pool CFO Wayne Cheeseman said that while divestiture efforts were ongoing, suppliers to the hog operations began shortening their payment terms, and recently, a major creditor for two of the community-owned hog operations called its loans.

As a result of these changing circumstances and in order to protect its own interest, the Pool, which also provides funds to the operations, took similar steps, issuing demand letters yesterday to the eight hog operations in which it has an interest.

Heartland Pork Management Services, an independent operating company with its own management team, along with the Boards of Directors of Elm Springs Multipliers, East Diefenbaker Pork Producers and Carlton Trail Pork took the court action to protect the companies' assets and remain in control of the operations while a suitable solution is developed to address the financial challenges facing the operations. The Boards of the four community-owned operations (Bear Hills Pork Producers, Carrot River Pork Producers, Horizon Pork Producers and Manitou Hog Enterprises) have also advised the Pool that they will be seeking to join the CCAA application.

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