Prairie farm machinery dealer AgWest has entered creditor protection under the Companies’ Creditors Arrangement Act (CCAA) after an application from its primary secured lender, the Bank of Montreal (BMO).
The dealership network operates eight locations across Manitoba and eastern Saskatchewan, selling equipment for AGCO brands such as Massey Ferguson, Fendt and PTx Trimble, as well as CLAAS equipment and several shortline manufacturers.
The Manitoba Court of King’s Bench granted an initial order on October 13, giving AgWest a 10-day stay of proceedings through October 23, 2026. BMO has asked the court to extend that protection until January 29, 2027, which would give the company more time to restructure.
Sale Process And Court Oversight
A court-appointed monitor, Alvarez & Marsal Canada, is expected to run a Sale and Investment Solicitation Process (SISP) to find either a purchaser or a refinancing partner for the business during the extended protection period.
Court documents say AgWest’s financial strain stemmed from lower crop prices, high interest rates and rising input costs, which led many Prairie farmers to delay machinery purchases and cut back on capital spending. The filings also note that discounting and auction activity among some competitors in Western Canada weighed on used equipment prices and inventory values.
These pressures emerged after AgWest expanded into Saskatchewan following its 2023 acquisition by the Dutch-based Zweegers Equipment Group.
Debt Load And Financing
According to court records, AgWest holds roughly $73.7 million in liabilities against $75.8 million in book assets, the bulk of which is equipment inventory. BMO is owed approximately $34.3 million under operating and credit facilities. AGCO Canada and CLAAS of America hold secured floor-plan claims of about $20.8 million and $7.4 million, respectively, while Farm Credit Canada is owed $10 million secured against real estate.
Court filings state that BMO initiated the proceedings after AgWest breached its loan covenants and its controlling shareholder declined to inject additional capital into the business.
To keep the dealership operating, BMO has committed an interim debtor-in-possession (DIP) loan of up to $6 million, intended to allow AgWest to continue paying staff and maintaining parts, warranty and service support for customers while the restructuring proceeds.
Court documents show AgWest employs roughly 109 people across its locations, which include Elie (head office), Morden, Brandon, Neepawa, Russell and Benito in Manitoba, and Weyburn and Yorkton in Saskatchewan.
The future ownership of the dealership network is expected to become clearer as the court-supervised sale and investment process continues over the coming months.
This article references reporting from:
