By Connor Lynch
MORRISBURG — Homestead Organics is nearly $3-million short of being able to pay back all of its creditors, according to a Raymond Chabot creditors’ report.
Homestead Organics filed for bankruptcy in April, owner and president Tom Manley said. It was a devastating loss for the local organic agriculture sector, as well as for Manley himself, who was relying on the company for his retirement.
The company owes $4.2 million to various creditors. Only $1 million of the total debt is secured, owed to two banks, two leasing companies and a financing company, meaning they get paid first. According to Manley’s valuation in the creditors’ report, Homestead Organics has only $1.3 million in assets, enough to pay off the secured creditors, but leaving only $300,000 to split among 171 businesses and individuals.
Here are the five largest creditors:
• The Development Bank of Canada: $780,000.
• Katherine Willow, of Carp: $500,000.
• The Royal Bank of Canada: $262,000.
• Wayne Keller and Joyce Angelus-Keller of Otter Lake, Que., $250,000.
• Todd V. VanDellen of Wallaceburg: $134,996.
Homestead Organics had plenty of inventory and property assets, but had no cash, furniture, vehicles or promissory notes to speak of. The bulk of its assets are in its property, valued in total at $780,000. Assets include 10 silos, two forklifts, the feed mill, two corn bins, a grain cleaner, three storage trailers, a 75 ft. truck scale, an office trailer, a machine shop, retail store and shelving. Homestead Organics owns processing and storage plants at Berwick (valued at $240,000) and Morrisburg (valued at $540,000). The Sebringville location was sold on April 30 to Chris Keffer, and will continue as an organic feed mill.