Mustard Capital Inc. is announcing today that it is pursuing restructuring with its creditors. MCI has engaged the accounting firm of Ernst & Young (EY) and the law firm of MacPherson Leslie & Tyerman (MLT) as its team of restructuring professionals to lead a reorganization of its financial affairs.
MCI recently expanded into a second facility in Vanguard. A combination of
expansion cost overruns and operational losses from delayed development of its new capacity have put MCI in the position where it is required to seek restructuring of its debt.
With the assistance of EY and MLT, the Company has prepared and filed a Notice of Intention to Make a Proposal to its Creditors under Section 50.4 of the Bankruptcy and Insolvency Act. This process provides the Company with an initial period of 30 days within which to develop and present to its creditors a proposal to restructure its business and financial affairs.
During this process, it is the intention of MCI to carry on “business as usual.” To the full extent possible, MCI will strive to meet all of its ongoing obligations to its employees, farmer suppliers, and customers and will carry on business in the usual manner.
MCI is currently seeking to secure an injection of interim operating credit with which to fund its restructuring efforts and anticipates making a further announcement in that regard within the next few business days.
With the assistance of its professional advisors at EY and MLT, the Company is confident in its ability to succeed in restructuring its business and financial affairs and looks forward to the continued support of farmers and other supplier partners to serve its valued customers in the years ahead.