Alberta Court: Sunterra Slams into $35M Judgment Over Cheque Scheme

CALGARY, AB — An Alberta judge has pinned a $35 million liability on Sunterra for running what amounts to a corporate shell game with cheques, marking the latest blow to the embattled agricultural giant already fighting for survival under creditor protection.

Justice Michael Lema of the Alberta Court of King's Bench issued the ruling on January 27, finding the company orchestrated a cheque-kiting scheme that moved nearly $6.3 billion in intercompany transfers throughout 2024. That's billion with a B—paper shuffling on an industrial scale.

The judgment awarded U.S. agricultural lender Compeer Financial the full amount it claimed after discovering the scheme in February 2025 and promptly freezing Sunterra's accounts. When the music stopped, National Bank dishonoured cheques totaling just under $60 million USD.

The Personal Tab

In an unusual move, the court held Sunterra's president personally responsible for the $35 million debt. Ray Price, along with Debbie Uffelman and Craig Thompson, did not deny undertaking the scheme, according to court findings.

Sunterra chairman Art Price says the company is considering an appeal. Translation: the legal meter is still running.

How We Got Here

Sunterra's troubles began snowballing last year. After Compeer cut off the cheque-writing spigot in February 2025, a U.S. federal judge appointed a receiver for the company's American swine operations in March. By April, Sunterra Farms had filed for creditor protection under the Companies' Creditors Arrangement Act in Canada.

The company remains under CCAA protection with a stay extension running until February 28—just three weeks away. Its U.S. operations, which racked up over $36 million in losses, received a $15 million buyout offer from Arkansas-based The Pork Group.

What It Means

For Calgarians who know Sunterra Market as the upscale grocery chain, this ruling complicates an already messy restructuring. The company is simultaneously fighting creditor claims in Canada, navigating receivership in South Dakota, and now staring down a $35 million judgment that could reshape its path forward.

The CCAA proceedings include a formal litigation process to sort through competing claims from Compeer and National Bank of Canada. FTI Consulting Canada, acting as monitor, will oversee how this fresh liability factors into the company's restructuring math.

The stay extension expires February 28. Until then, Sunterra remains in financial limbo—one court ruling richer in debt, one step closer to the edge.