Released on October 15, 2004
The Government of Saskatchewan and SaskWater have reached an out-of-court settlement with investors and creditors in the bankrupt Lake Diefenbaker Potato Corporation. Government and SaskWater have paid $7.9 million to the plaintiffs in accordance with an agreement that was reached following a three-day pre-trial conference in September and finalized today.The investors and creditors were claiming in excess of $100 million in investment losses and damages related to government's investment in potato storage facilities in the Lucky Lake area.
"This is a fair and reasonable settlement for all parties and it avoids further costs and delays that would have been incurred by going to trial," Minister responsible for SaskWater Peter Prebble said.
Spudco was established in 1996 as a division of SaskWater. Its goal was to assist with the development of the potato industry in Saskatchewan.
"Government had good intentions when we became involved in the construction of potato storage sheds, but we made some mistakes," Prebble said. "We have apologized and taken responsibility for those mistakes. Construction of the seven potato storage sheds has contributed to a significantly larger potato industry in the Lake Diefenbaker area which has a positive impact on the provincial economy."
-30-
For More Information, Contact:
| Tyler McMurchy Media Services Regina Phone: (306) 787-5780 |