Meadow Creek Cedar is at risk of bankruptcy if creditors refuse the company another extension Monday to pay its outstanding debts.

Meadow Creek creditors to vote Monday

Companies owed money by Meadow Creek Cedar will decide Monday whether to grant the company a 60-day extension on its outstanding payments.

Companies owed money by Meadow Creek Cedar will decide Monday whether to grant the company a 60-day extension on its outstanding payments.

“The creditors will be voting to either agree to or decline a further extension,” Ben Franklin of bankruptcy trustee Murphy and Associates said in an email.

If the creditors decline, “there is a possibility that the proposal could be annulled and the company adjudged bankrupt,” he said.

Meadow Creek Cedar filed a proposal for creditor protection in early 2009.

At the time it owed $427,000 in payroll deductions to Canada Revenue Agency, a secured creditor. Unsecured creditors were owed almost $1.5 million and were to receive 25 cents on the dollar.

The proposal was approved that fall. Five out of six payments to the tax collector have since been made, along with three out of four payments to unsecured creditors.

However, Meadow Creek defaulted on its final payments, due by the end of April and November 2010 respectively.

Trustee Lloyd Murphy attributed this to “various reasons” — the operation’s cash flow turned out to be less than projected, and an associated company expected to help with refinancing didn’t come through with the additional funds.

“A lot of the money to fund the proposal is coming from outside sources, so it’s not like the operation of the company per se is generating any huge cash flow that anyone’s benefitting from,” he said.

Following a discussion of “the company’s operations, cash flow, and plans to increase production and finished lumber for export,” the deadline to pay the outstanding money — about $71,000 to Canada Revenue Agency and a total of $91,000 to over 50 unsecured creditors — was extended to March 7.

However, they missed that deadline as well.

Murphy was out of the office Wednesday and unavailable for comment on the latest potential extension.

Companies on the unsecured creditors list are from throughout BC and Alberta.

Just Posted

Parmedics union raises alarm over spike in out-of-service ambulances

Staffing shortages affecting service levels in Kootenays

Update: Car located in Pend d’Oreille River, teenagers remain missing

A fundraiser has been set up at Kootenay Savings in Fruitvale to help support the family

Award winning documentary to be screened in Nelson

‘The Bikes of Wrath’ will run April 5 and 6 at The Front Room

LETTER: Clean water is a right for First Nations

From readers Sandra Hartline and Keith Wiley

Winlaw Elementary to get new playground

It’s being funded by the provincial government

Five highlights in the 2019 federal budget

Latest budget includes a sprinkling of money for voters across a wide spectrum

Facebook to overhaul ad targeting to prevent discrimination

The company is also paying about $5 million to cover plaintiffs’ legal fees and other costs

B.C. mosque part of open-house effort launched in wake of New Zealand shootings

The ‘Visit a Mosque’ campaign aims to combat Islamophobia

‘That’s a load of crap’: Dog poop conspiracy spreads in White Rock

Allegation picked up steam through a Facebook page run by a city councillor

Explosives unit brought in after suspicious boxes left at B.C. RCMP detachment

Nanaimo RCMP issues all clear after packages were found on lawn earlier in the day

Avalanche control tomorrow on Highway 1

Expect closures of up to two hours east of Revelstoke

Newfoundland man caught after posting photo of himself drinking and driving

The 19-year-old took a photo of himself holding a beer bottle and cigarette while at the wheel

2019 BUDGET: As deficit grows, feds spend on job retraining, home incentives

Stronger economy last year delivered unexpected revenue bump of an extra $27.8 billion over six years

Carfentanil found in 15% of overdose deaths in January: B.C. coroner

Carfentanil is 100 times more powerful than illicit fentanyl and used to tranquilize elephants

Most Read