P.E.I. hog plant not going into receivership
First it was closing, then it was going into receivership. Now it seems P.E.I.'s hog plant is not going into receivership after all.
Contrary to information provided bytreasury departmentofficials,the government will notbe taking over control of the Natural and Organic Food Group hog plant, CBC News learned Friday.
Officials said Thursday that as of 5 p.m. AT, theCharlottetown plant wouldbe put into receivership.
Buton Friday,Treasurer Wes Sheridan said that statement was made based on information from the owners of the hog plant who said they would be putting locks on the doors Thursday night.
Sheridan said the governmentlending agency is prepared to put the company into receivership if and when the hog plant owners walk away.
At a news conference with provincial government officials on Thursday, Scott Dingwall, one of four P.E.I. farmers who holds shares in the plant, announced that in light of a government decision to provide no more operating loans, the company would close for good at 5 p.m. AT.
Following the news conference, government officials said they would step in with a receiver at that time and continue operating the plant.
At the time, Sheridan said the change of plans was entirely the decision of NOFG.
"Scott Dingwall stood up and was interviewed by CBC and announced that he would be passing over the keys to the plant," he said.
"After that fact, he decided in consultation with the rest of his group that they would not be passing the keys over to the province, and in fact went back and talked to the people and asked them to come into work."
Sheridan said government is still refusing to budge on a request from the hog plant for a further $2-million operating loan. The provincial lending agency is prepared to put the company into receivership if and when the hog plant owners walk away.
One hog plant executive says the company is meeting with government officials later Friday and is hoping to send out a "good news announcement" by the end of the day.