In the fallout of Pigeon King International’s declaration of bankruptcy it has been revealed the company was about $23.5-million in debt.
Last week BDO Dunwoody released financial information about PKI, which was officially handed over to the Waterloo accounting firm by owner Arlan Galbraith on July 2.
BDO Dunwoody will now act as bankruptcy trustee for the company, which closed the doors of its offices in Waterloo and Moorefield on June 18.
The BDO Dunwoody documents, available online at www.bdo/pigeonking, reveal the company’s known liabilities total $23,542,403, while its known assets are just $46,003, including two company vehicles and furniture at both offices.
Not surprisingly, the majority of PKI’s liabilities – $20-million – are listed under unsecured breeding creditors, while $2.84-million is for barn rental creditors, $425,000 for Alma Poultry Farm Inc., and $277,400 in general accounts payable.
On June 26, Galbraith personally signed all the BDO Dunwoody documents, which list 168 Canadian pigeon breeders, including at least 15 in Wellington County, and 303 American breeders. Also located within Wellington County are seven of 12 Canadian barns rented by PKI, as well as the homes of at least 12 of the listed 16 company employees.
The documents show total PKI liabilities based in the county (for breeders and rented barns) are over $1.3-million.
But because Galbraith operated the business as a sole proprietor until February 2007, the list of total breeders and landlords might be much larger.
“These individuals are not included as creditors of PKI as their claim is against Arlan Galbraith,” the BDO Dunwoody website stated.
“[We are] not appointed and not handling any matters related to Arlan Galbraith personally.”
Though he had put his Waterloo home up for sale, there has been no confirmation that Galbraith has personally declared bankruptcy.
BDO Dunwoody, over the next several weeks, will review the financial records of PKI, including the company Benn Contracting Inc.
“We understand that there was limited separate reporting for Benn Contracting,” the firm’s website said. “The company was incorporated in March 2008. All breeders-creditors that may be associated with Benn Contracting have been included in the PKI filing. We understand that there are no separate assets owned by Benn Contracting.”
Sacred Dove Ranch Inc., another company owned by Galbraith, “was incorporated in February 2007 and apparently had no assets or liabilities.”
BDO Dunwoody has noted it has no ownership or interest in the hundreds of thousands of pigeons currently held by breeders.
A website run by the Ministry of Agriculture, Food and Rural Affairs (http://www.omafra.gov.on.ca/english/new/pigeon.htm) provides information for farmers wondering what can be done with their birds, including humane euthanasia or slaughtering and processing.
