A Manitoba company that received Ontario taxpayers' money a year ago is desperately trying to sell its Blenheim plant before it goes bankrupt.
That's according to a court report filed last month by company trustee, Lazer Grant Inc. of Winnipeg.
Cross Country Manufacturing received $550,000 from the province in October of 2016 to expand its Blenheim plant and create 100 new jobs, but now court documents show it's in financial trouble. The trustee says selling the company "continues to be in the best interests of the unsecured creditors" and "it will be better than bankruptcy."
The trustee says the sale could close as early as mid-November and hopes to have "an unconditional offer to present to the court for final approval before December 4" after an extension was granted by the court. Lazer Grant Inc. also says that Cross Country "should be in a position to present a proposal to [pay] its creditors before December 4, however, it remains possible that a third extension may be requested." Cross Country has a $3.5-million line of credit with the Bank of Montreal that is expected to run out in about two weeks but the trustee is confident the sale will be final by then.
PricewaterhouseCoopers says talks continue "with a potential bidder on an exclusive basis."
Cross Country Manufacturing makes gravel and transport trailers and has another plant in Manitoba.
