Sunterra Group put up for sale after $35M cheque-kiting judgment
Multiple Sunterra businesses, including grocery stores and farms, are being offered for sale or investment following a court finding that the company engaged in large-scale fraud.
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Sunterra Group is seeking buyers and investors through a court-supervised restructuring process, months after an Alberta judge found the company liable for approximately $35 million in a cheque-kiting scheme that Justice Michael Lema described as being carried out "on an astonishing scale."
On April 28, 2026, the Alberta Court of King's Bench approved a sale and investment solicitation process authorizing an appointed chief restructuring advisor to seek potential buyers, investors, or other restructuring proposals. The court-approved process invites interest in transactions involving investment in, restructuring, recapitalization, refinancing, or reorganization of the Sunterra Group, as well as potential sale of all or part of the company's assets and business operations.
Neil Narfason Professional Corporation has been appointed as the chief restructuring advisor. Sunterra's operations include Sunterra Market locations in Calgary, Edmonton, and Red Deer, as well as agriculture businesses in both Canada and the U.S.
In a January 27 court decision, Justice Lema found that Sunterra Farms Ltd. and its affiliated companies repeatedly transferred cheques between accounts of its Canadian and American entities in a manner that exploited the conditional credit or "float" available before cheques cleared. The scheme was designed to "cover" withdrawals from those accounts. Ray Price, president and director of Sunterra Group, was also found personally liable.
Compeer Financial PCA, an American lender, discovered the scheme in early February 2025 when it found that cheques deposited into the company's accounts between January 27 and February 10 amounted to "significantly more than the stated annual revenues of the U.S. Sunterra Entities" by "many multiples," according to the judgment. The company's income statements had been submitted to Compeer in connection with the renewal of a line of credit. Following the discovery, Compeer suspended Sunterra's cheque-writing privileges. Sunterra sought to appeal the ruling, but that request was denied in April by Justice Michelle Crighton at the Court of Appeal of Alberta.
What is the timeline for the sale and investment process—when will bids close and a decision be made?
How many Sunterra employees work across the Market locations and agriculture operations, and what happens to them during restructuring?
We'll update this story as answers emerge.
The facts
How much was Sunterra Group found liable for?
Sunterra Group was found liable for approximately $35 million in a cheque-kiting scheme that an Alberta judge described as being carried out 'on an astonishing scale.'
When did the court approve a sale and investment process for Sunterra?
The Alberta Court of King's Bench approved a sale and investment solicitation process on April 28, 2026.
What businesses does Sunterra Group operate?
Sunterra Group operates Sunterra Market locations in Calgary, Edmonton, and Red Deer, as well as agriculture businesses in both Canada and the U.S.
Who discovered the cheque-kiting scheme?
Compeer Financial PCA, an American lender, discovered the scheme in early February 2025 when it found that cheques deposited into the company's accounts between January 27 and February 10 amounted to significantly more than the stated annual revenues by many multiples.
