Colbex beef plant in receivership
June 4, 2012
by Meat&Poultry Staff
ST-CYRILLE-DE-WENDOVER, Quebec – Creditors for the Levinoff-Colbex packing plant have asked for and received a court-appointed receiver, according to news reports.
Colbex, Eastern Canada’s largest packing plant for cull cattle, was closed indefinitely on June 4. Lawyers for the National Bank of Canada filed a petition for receivership at the Quebec Superior Court in Montreal. The bank submitted the filing after the company’s management failed to restructure its finances and failed to secure interim financing to keep the plant running.
All of the company’s executives and directors resigned from their jobs, leaving the company without leadership, according to the bank’s filing. The bank also returned roughly C$850,000 (US$816,000) in checks written by the company.
Cull animals will be redirected to other slaughter plants in Quebec and other facilities in Canada or the US, according to news reports.