B.C. court approves receiver in $19M blueberry farm default

British Columbia’s Supreme Court has approved the appointment of a receiver in a case involving two blueberry farm owners, a trucking company, and a debt exceeding $19 million, Law360 reported. 

Blueberry farm operators Evergreen Future Investments Ltd. and Athabasca Farms Ltd., along with trucking firm Amcco Carrier Ltd., defaulted on a loan agreement with the Bank of Nova Scotia, which was secured by mortgages and security agreements, including four residential properties.

As of June, the debt totaled over $19.3 million, with daily interest accruing at nearly $1,600. The respondents argued that the appointment of a receiver to take over their assets would deprive them of a six-month redemption period, while the bank contended it was necessary to maximize asset value, citing defaults and declining property values.

Justice of the B.C. Supreme Court, Kevin Loo, emphasized that the measure is extraordinary relief but justified due to the prolonged default, uncertain prospects of refinancing, and declining asset values. Although the bank can realize on the assets through sale, foreclosure alone won't be enough.

Noting that a quick sale could jeopardize the respondents’ right to redeem their properties, the court delayed the receivership until October, which grants them a three-month redemption period. Justice Loo found no evidence that management of the companies or preservation of assets was necessary, limiting the receiver’s role to marketing and selling properties if the debt remains unpaid or unrefinanced.

The receiver’s borrowing power was limited to $150,000, down from the initially requested $750,000.

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