Yorkton-based Morris Industries is headed out of creditor protection with new ownership.
A sales and solicitation procedure failed to attract any acceptable bids for the 96-year-old maker of farm implements, according to a report filed with the court by receiver monitor Alvarez and Marsal.
Discussions with interested parties led to a deal with Superior Farm Solutions, owner of implement maker Rite Way of Imperial. Rite Way makes rock pickers, harrows and land rollers.
The deal, supported by the biggest Morris creditor, the Bank of Montreal, is expected to close by June 30.
Details of the transaction have not yet been disclosed.
Morris filed for creditor protection in January after cash flow issues related to high debts and warranty work for its Quantum drill in Australia.
A May report of the receiver noted Morris had $1 million cash flow in the first three weeks of May and expected $10 million cash flow by July.
When Morris filed for creditor protection the Morris Group of companies owed $84 million to secured creditors with the Bank of Montreal owed $63 million; Farm Credit Canada, $6 million; and a partnership connected to the owners, $8.5 million
Unsecured creditors were owed $13 million.
Morris Industries was started in 1924 by George Morris, who was inducted into the Saskatchewan Agriculture Hall of Fame in 1977.
Known for rod weeders, the company has grown to make air carts, drills, seeders, packer harrows and bale carriers.
The Morris family sold the business in 2007 after 58 years of ownership. New owners took over in 2017.
Morris is the second largest agricultural business on the Prairies needing creditor protection within the last year.
Ilta Grain, with a buying/processing facility in Belle Plaine, went into receivership last June and was sold to various buyers with Viterra buying the Belle Plaine facility.
Ron Walter can be reached at ronjoy@sasktel.net
