Legumex Walker subsidiary defaults, canola plant at risk

Fri Jul 31, 2015 11:24am EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

WINNIPEG, Manitoba, July 31 (Reuters) - Legumex Walker Inc , a Canadian processor of legume and canola crops, said on Friday its Pacific Coast Canola subsidiary has defaulted on a $54.6 million loan, putting operation of Pacific's canola-crushing plant in Warden, Washington, at risk.

Legumex shares plunged 64 percent in Toronto to 89 Canadian cents.

Winnipeg, Manitoba-based Legumex said that AgCountry Farm Credit Services has demanded Pacific repay the loan, but that Pacific cannot comply. If Pacific can't refinance its debt, the canola plant will cease operation, Legumex said in a statement.

Legumex spokesman Lawrence Chamberlain said the plant is currently running.

Legumex's special crops division, which processes crops including sunflower seeds and lentils in 14 plants in Canada, the United States and China, is not affected.

Legumex owns 84 percent of Pacific Coast Canola, which crushes the oilseed in a state that doesn't grow much of the crop. Glencore Grain Investment LLC owns the rest.

In March, Legumex said that it might sell itself or make other strategic moves. (Reporting by Rod Nickel in Winnipeg, Manitoba; Editing by Peter Galloway)