Picture butte feeder

[iceman]

Can someone explain what’s going on here?

Iceman out

[url]https://insolvencyinsider.ca/p/picture-butte-feeder-cooperative-restructuring-officer-order[/url]

[Landdownunder]

https://insolvencyinsider.ca/p/picture-butte-feeder-cooperative-restructuring-officer-order

[ColevilleH2S]

$280 Million!?

That'll buy you enough barley to fill 23,000 Super Bs.

[LEP]

Feeder Coops are meant to finance the purchase of feeder cattle and sometimes breeding stock.

The idea being by being jointly and severally liable for the debt allows for a much cheaper source of financing. Funds are not supposed to be used for purchasing feed or paying yardage or any other expenses.

My guess is that someone has been having feeding losses so the number of cattle that are supposed to be held by the loan security aren't actually there.

Also looks like very sloppy administration. Ineligible members signed up, deposits not taken prior to advance of the funds and obstruction of any inspection or audit by the bank. See the previous paragraph for the reason why.

I dealt with several feeder associations when I was banking. They can be very good or very bad. Depending on the economics of feeding and the people running the coop.

[Old Cowzilla]

Likely add another 10% that's sitting in security accounts for said cattle.

[LEP]

It takes alot of money and equity to have a big feedlot full of cattle.

[shtferbrains]

230 members owe $280 million?

3 to 400 head each?

80 to 100,000 head of feeder calves on loan?


Does that sound like it meets the guidelines?

[Jay-mo]

Another Easterday ghost herd???

[Asstastic]

Shooten and sons from picture butte and serfas farms are listed on the court of kings bench statement. Will be interesting in seeing how this plays out. I wouldn’t be surprised if some big cattle buyer isn’t involved also

[blackpowder]

Maybe the concept is outdated.