Glacier FarmMedia – The Alberta government has suspended a loan program at Picture Butte Feeder Cooperative, the province’s largest cattle financing co-op, after an inspection alleged a number of financial mismanagement and regulatory issues.
The province’s claims were attached to an affidavit for Tony Ankermann, who was vice-chair of the co-operative, dated Feb. 18.
They include that the co-operative allegedly accepted ineligible feeder members, used guaranteed loan proceeds for improper purposes, provided more advances than allowed and obstructed provincial inspections, among other violations.
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Formed in 1991, the Picture Butte Feeder Cooperative is part of the province’s Feeders Association Loan Guarantee (FALG) program, which helps livestock producers get easier access to loans. The FALG program has been in place in Alberta since the 1930s and is intended to provide “relatively easy access to low interest, leveraged financing backed by a government guarantee,” according to the province.
In response to the order, the co-operative sought court approval to appoint a restructuring officer, Alvarez & Marsal, to oversee its operations and work toward lifting the loan suspension.
A number of board members resigned after the order was issued, while the remainder were set to resign upon the appointment of a restructuring officer, according to documents on Alvarez & Marsal’s website.
Alvarez and Marsal consultants are now acting as if they were the PBFC board and staff while they handle business affairs, according to a statement from Alberta Agriculture.
According to information posted on Alvarez & Marshal’s website, PBFC owes a little more than $281 million to its lenders under the credit agreement, which it says is approximately the same amount the PBFC lent to its members.
As of Aug. 31, 2024, the PBFC had a total of 227 active and inactive members, according to Ankermann’s affidavit.
