Above Food Ingredients (ABVE) said Sunday that Royal Bank of Canada submitted an application for receivership for the company's Purely Canada Foods subsidiary and four affiliated guarantor subsidiaries.
Purely Canada Foods has been operating in a limited capacity over the last six months as it has been working with the Canadian Grain Commission to meet relicensing requirements.
Above Food said that Purely Canada Foods and Royal Bank of Canada agreed on a two-week period to negotiate the terms of a forbearance agreement, expecting to reach a resolution with the period.
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