One of Manitoba's largest equipment dealership networks has been given a temporary lifeline to stay in business while it seeks new financing, pursues a sale or develops a restructuring plan, as the Manitoba Court of King's Bench granted protection from creditors.
AgWest Ltd. could be heading toward liquidation as the company was unable to meet payroll obligations in the middle of harvest season, according to a document filed by the company's bank, the Bank of Montreal.
AgWest serves farmers at six dealerships in Manitoba at Elie, Morden, Brandon, Neepawa, Russell and Benito, as well as two locations in Saskatchewan at Weyburn and Yorkton.
AgWest Ltd. has defaulted on more than $34 million in loans, according to an opening brief in a restructuring proceeding under Canada's Companies' Creditors Arrangement Act.
"Since 2026, the AgWest entities have experienced significant financial difficulties, including liquidity challenges and a general inability to meet their obligations as they become due," the Bank of Montreal said in a filing with the Manitoba Court of King's Bench.
"As a result of these financial difficulties, the AgWest entities have defaulted under a loan agreement with BMO dated May 1, 2023."
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