Norfolk Co-operative Company Limited

February 28, 2005 09:00 ET

Norfolk Co-Operative Receives Court Protection and Time to Restructure


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: NORFOLK CO-OPERATIVE COMPANY LIMITED

FEBRUARY 28, 2005 - 09:00 ET

Norfolk Co-Operative Receives Court Protection and
Time to Restructure

WATERFORD, ONTARIO--(CCNMatthews - Feb. 28, 2005) - Norfolk Co-operative
Company Limited received court protection from creditors on Feb. 22.

The Ontario Superior Court of Justice appointed a monitor, KPMG Inc.,
which will oversee the co-operative's restructuring efforts. While under
court protection, Norfolk Co-operative will continue business as usual.

"The company regrets that it could not return its business to financial
health," says Jim Campbell, the co-operative's general manager. "Under
these circumstances, reorganization under the Companies' Creditors
Arrangement Act is the best option, and gives the co-operative a chance
to save jobs and services."

In a letter to co-operative members, the co-operative said it planned to
participate in a new business with GROWMARK, Inc. It is expected that
this new business, which is subject to court approval, will continue to
provide the goods and services to members and customers of Norfolk
Co-operative.

"We intend this to be a solution for the long-term, not just this
spring," adds Campbell. Norfolk Co-operative also issued a letter to
grain customers stating that grain in storage in Norfolk Co-operative's
elevators remains protected under the Grain Financial Protection
Program, and is held under the terms of the Orford Co-operative Grain
Dealers License.

The board of directors of Norfolk Co-op has invited co-operative members
to an information session at 10:00 a.m. on Mar. 15 at the Royal Canadian
Legion in Waterford.

Norfolk Co-operative has annual sales revenue of about $60 million and
employs 50 people. It has more than 4,500 members.


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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Norfolk Co-operative Company Limited
    Jim Campbell
    General Manager
    (519) 443-8681