About 10 years ago I visited Monette Farms and I was intrigued by their aggressive business model. But now that a lot of their debt has to be refinanced at much higher interest rates, their creditors are knocking at the door. I can’t help but think that they’re not alone.
…company founder Darrel Monette put land up for sale to generate cash. His largest creditor, a syndicate of lenders led by Scotiabank, worked with him time and again to try to keep the Saskatchewan-based farm afloat.
It didn’t work.
Monette didn’t sell enough land, and the syndicate loan, originally $950 million with $830 million outstanding, came due April 15. Monette owes about $905 million in secured debt, and the nearly 500,000-acre operation faces massive restructuring if it hopes to survive.