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Judge rules that former members of BC Tree Fruits should share in post-bankruptcy assets

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The remaining assets of the bankrupt BC Tree Fruits Cooperative totalling $12 to $15 million are to be shared between current and former members, according to the British Columbia Supreme Court. These funds are surplus after creditors were paid from the sale of cooperative assets after its collapse in August 2024.  

 

Justice Miriam Gropper ruled on February 12, 2026 on a petition from former members of the BC Tree Fruit Cooperative seeking to prevent current members from holding a special meeting to amend Rule 125 of the governing rules of the cooperative. That rule states that current and former members are entitled to a share of those funds based on the tonnage shipped to the packinghouse over the last six years of operation. If that amended resolution had passed, it would have prevented any distribution of the remaining assets to former members.

 

Under Rule 125, the current members are entitled to 68 per cent of the surplus funds and the former members to 32 per cent. There are $4 million in funds that would be distributed to former members. 

 

Amarjit Singh Lalli represented the current members. Steve Day represented the former members. 

 

In her concluding statements, the justice wrote: “Having found that the special general meeting has been requisitioned with the express object of considering and voting on the proposed resolution, which I have found to be oppressive and unfairly prejudicial conduct of the current members to the obvious detriment of the former members, I grant the relief sought by the former members.”  

 

She directed the receiver Alvarez and Marsal Canada to make any future distributions to current and former members. 

 

Since September 2025, B.C. Tree Fruits has been operating under the ownership of Wildstone Construction Group and under the management of Ontario-based Algoma Orchards.

 

For the court proceedings, link here: https://www.bccourts.ca/jdb-txt/sc/26/02/2026BCSC0229.htm

 

 

Source:  BC Supreme Court February 13, 2026 posting

 

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Submitted by Karen Davidson on 16 February 2026