Newco Front...Just because it's quiet doesn't mean that producers means other parties are deciding f

[oneoff]

Fine... we are all on the same page for licenced primary elevators.

But grain dealers and brokers and "feedlots" don't fall into that category.

What needs to be discussed in a lot more detail are the problems associated with those more locally based sectors; and I detect a whole lot more reluctance to speak out.

Maybe its because of a lot more personal relationship with those owners than with a Mayo or James for example.

But seemingly those relatively smaller operators just don't have really strong financial foundations.

[oneoff]

And another week has come and gone; and no new information for the unsecured creditors.

I suppose there is always next week and next year; small claims court is too far away; nobody knows the legal system well enough and Tony Merchant is too busy with cases that have some extra zero's on the amounts being sought.

[oneoff]

The open letter copied below was addreesed to the creditors of Newco Grain early this evening. It is this type of disclosure that should be given in circumstances where other people's money becomes at risk; because it is where other peoples business becomes the business of hundreds of others; directly and indirectly affected. Hopefully all the parties can both learn and benefit from open dialogue and some understanding. And I again repeat that smugness on the part of anyone in this day and age is also categorized by other more descritive terms that convey the intent more poignantly.


" To the creditors of Newco Grain Ltd. (NGL):

We are writing to you to give you a brief update as to the affairs here at NGL. In the past 6 months we have been in touch with you to the best of our ability by phone, but we cannot maintain that anymore. From now on we will communicate on a regular basis by email.

We at NGL are committed to repayment of our debts and appreciate your patience as we work through the problems that we are facing.

The situations we are in at the moment are as follows:

- One of NGL’s accounts receivable in the amount of approx $672k is 60% collectable by February 28, 2013, according to creditors proposal and the remaining balance scheduled for collection in equal monthly payments for the seven months leading up to September 30, 2013. This is in debt review so it is based on the fact that the client gets refinanced.

- Also for long term account receivable NGL is working to collect approx $367k over 8 years.

- The land that NGL owns has equity in the amount of approx $200k. At the moment we have an expression of interest on it. If this proposal goes forward this money will be distributed pro-rata to creditors.

- We are currently communicating with and in the process of retaining a third party to assist in formulating a formal proposal to deal with all outstanding amounts.

Again, thank-you for your patience and we will keep you updated.


Neil Slingerland

1-800-661-2312
neil@newcograin.com