Heartland Pork Seeks Bankruptcy ProtectionREGINA - 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."We believe our efforts will support the opportunity for a positive resolution for the hog barns in these communities," Cheeseman said. "From the Pool's perspective, the company was simply unwilling to continue to accept the continued losses or to jeopardize its security interests in the face of possible proceedings that may have been initiated by others."Cheeseman said the Pool will co-operate fully with the monitor, KPMG, Inc., including supplying them with information gathered during the divestiture process. He noted the Pool is also applying to the court to support the hog operations with interim funding (Debtor-In-Possession, or DIP, financing) to allow them to continue to operate through the CCAA process.While protected by a CCAA Order, the companies continue to operate their businesses as usual and develop a plan for financial recovery. Creditors are prevented from taking assets or substantially changing the terms of contracts. An Order is expected to be granted later this morning and will initially stay in place for 30 days. There is an opportunity to extend this term, if necessary, at the Court's discretion."Today's decision is no reflection on the Pool's financial health," Cheeseman said. "The hog operations have not contributed to the company's earnings over the past several years, and in fact have been a draw on our resources because of continued losses. This is an ancillary, non-core business to the Pool."The Pool recorded a non-cash impairment charge in its second quarter related to its investment in the hog industry. Management does not believe that an additional charge is required as a result of this action.