Canadian agribusiness Sunterra Group and several subsidiaries have entered bankruptcy protection in Canada, including hog operations and pork processor Trochu Meat Processors. The restructuring follows a $35 million fraud lawsuit filed in the United States.
The legal action, brought by US lender Compeer Financial, accuses three Sunterra-owned farms of running a cheque-kiting scheme to inflate account balances artificially. Compeer claims the group owes over $35 million, with collateral valued at just $19 million.
Despite the proceedings, Sunterra has stated it will continue trading while working with insolvency trustee Harris and Partners to restructure. No store closures or operational shutdowns have been announced.
The case raises concerns around cross-border financing risk in agri-food sectors and will be closely watched by North American lenders, processors, and supply chain partners.