how does one handle a sale to Big Sky

[Hopperbin]

Remember when I complained about Viterra wanting me to fill out a personal guarantee on my farm corp.?
I got that done without the personal guarantee. 99 percent of farmers would think nothing of it. I believe it Oneoff.

[Hopperbin]

Hopper, the 60 per hog loss is based on the existing debt of the operation and any fixed obligations. Now that the list of debts is on hold, basically the operation can afford to pay its bills.

On the otherside, we are dealing with animals and animal welfare so they have to be fed and no court or receiver is going to see that happen. If there is no light at the end of the tunnel, the hogs would be put down or sold early and barns emptied.

[wmoebis]

No need to worry. On the news today Ritz says it is okay. It sounds like he wants to use the Fuz and Ergot problem to drive down the price of feed to save the hog producers and packing plants.

I would rather see him look at strategies to improve the price of degraded grain. Clean all the grain here on the prairies to supplement pig feed and save on frieght at same time.

[oneoff]

Maybe everyone should be held responsible for their bad decisions as well as those that turn out to one's advantage.

[ColevilleH2S]

Was not Bigsky majority owned by the government
of Saskatchewan? Thank goodness no one desided
this time, that ownership should sink more money
into this hole. Hopefully this sends a message to
incompetent managers that you are not too big to
fail, and that governments are not as likely as in the
past, to swoop in, and save your ass with a big
cheque.

This bankruptcy will at least make room for more
prudent and/or innovative pork production
enterprises.

[oneoff]

The point you miss "coal" is that the writedown comes on the backs of the cre3ditors and others like farmers owed money.
The corp that buys the remaining assets for a song won't be the guys that had their grains stolen.

[Hopperbin]

Sounds like a packing plant will be the one to possibly purchase BS the highest bidder will likely get it for pennies on the money owed to banks of course bank losing the biggest but likely insured somewhat anyway. Then I will put my money on this whole thing happening all over again in 3 years. When will farmers learn? Will the guy losing a hundred grand last time and this time do it again a third time?

[sumdumguy]

When we sell to companies that are overbidding
the market, we should wonder why they have to
overbid. Good companies know the market and
are fair with their offers. Today we have so much
information. We dont have to listen in on the
party line.

Like someone said on here, if its too good to be
true, it probably is.

If you want to chase the last 1/4 of a cent, dont
complain when you dont get paid at all. There
will always be farmerswho BS about what they
got.

[Mufferaw]

There should be warning flags that appear if you are selling - getting paid takes a bit longer with every load. News regarding poor margins in the pork industry was out there. Like others mentioned when premiums are paid usually because it takes longer for you to get paid and trouble sourcing in other locations. Why would they have to pay more if they don't have to.

Selling to the reciver at this point has small amount of risk - just use what happened 2 years ago as a base.

Olymel and Maple Leaf will need to be lining up to buy the operations - they need pigs for their plants in Red Deer and Brandon. They may have some trouble convincing their boards that primary pork production is a good investment.

Nobody shouls really be surprised by a failure of a capital intensive business. This is common in just about every industry - how can you forget about pulse processing plants. Remember the Skydome - built for $100 million in 1989 sold 3 times and last time it sold was for $20m.

[Partners]

Don't sell anything to Big Sky and let them go bye bye once and for all...

[oneoff]

But I doubt that 10% would agree with you hopper.

However; in no way does that suspicion undermine a very sound decision on your part. Anyone is a pretty stupid banker if they don't have a strong handle on the purchasers financial status.

And don't tell me that one broker, or farmer saw the Newco collapse coming. Just as all the red ink for the hog industry means that feed mills, pig producers and everyone else associated with such an industry is flirting with money losing ventures that parties are going to walk away from.
And it seems that limited companies, will be used for the very purpose they were created.


That is to limit the liability to that one's participation in that non-human entity.

[Hopperbin]

I do not agree with your limited company creation theory.

[Hopperbin]

Obviously supplying feed to a pork barn is not a securred creditor what does one have to do to become a secured creditor???? Us feed suppliers should be secured.

[Hopperbin]

That is to limit the liability to that one's participation in that non-human entity.


More so to limit the taxes. The threat of a