Dykman Cattle Co. Ltd. and Nechako River Quality Hay Ltd., operators of a large-scale dairy farm in Abbotsford, British Columbia, were placed under Companies' Creditors Arrangement Act (CCAA) protection on November 21, 2024, following a $75 million debt owed to The Bank of Nova Scotia. The debt originated from an initial $44 million loan issued in August 2019, with further advances made subsequently. The companies defaulted on their obligations in mid-2023, citing fixed revenues due to quotas from the British Columbia Milk Marketing Board and rising interest rates.

Despite a commitment letter governing credit terms in February 2023 and two forbearance agreements, the loan remained unpaid. The Bank of Nova Scotia sought the CCAA application to restructure the debt and preserve value.

PwC was appointed as the monitor. Legal representation included Fasken for The Bank of Nova Scotia, Blake, Cassels & Graydon LLP for PwC, and Lawson Lundell LLP for the companies.