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Manitoba hog producer files for bankruptcy

Puratone Corp., the third largest hog producer in Manitoba, has filed for bankruptcy protection, raising alarm bells about a crisis in the hog-producing industry in Manitoba.

Puratone Corp., the third largest hog producer in Manitoba, has filed for bankruptcy protection, raising alarm bells about a crisis in the hog-producing industry in Manitoba.

The operation has 40 barns, mostly in eastern Manitoba, producing about 500,000 hogs a year.

The company cited a whole series of challenging market conditions that has forced the company into a situation where it has to be restructured.

Those conditions include high feed prices brought on by the drought in the U.S. corn belt.

It owes about $92 million and is in breach of its loan covenants. According to court documents, it has lost about $36 million over the past four years.

Puratone has 300 employees, but a company release said over the past two years the company has eliminated non-core operations and cut staff.

Barns are remaining open and Puratone's secured creditors, the Bank of Montreal and the Farm Credit Corp. are supporting the action and will continue to fund operations, but industry sources say it is unclear what will happen.