One of Saskatchewan’s oldest and best-known farm machinery manufacturer has been granted creditor protection by the courts.
Morris Industries, one of Yorkton’s biggest employers with 300 workers, continues to operate under the Companies Creditor Agreement Act.
Morris filed for creditor protection on Jan. 8 after realizing there was insufficient cash flow to pay coming bills.
Court documents show Morris had $55 million in debt. About 650 unsecured creditors, mainly dealers and suppliers, are owed $13 million.
The company’s main banker, BMO, has extended $5.9 million interim financing while the creditor protection process runs its course.
The court has approved a plan to find a buyer or investors for the operation – manufacturing plants in Yorkton and Minnedosa, Man. and a Virden, Man. dealership.
The receiver, Alvarez and Marsal Canada Inc., listed unexpected warranties with a new drill, international trade disputes, poor harvest, new loan covenants with BMO, loss of a receivable’s lender and huge inventory as reasons for the company’s troubles.
Sales have declined for several years.
Buyers have until March 9 to show interest, with March 22 as the court date to go over bids.
Morris Industries was started in 1924 by George Morris in his garage. Morris was inducted into the Saskatchewan Agriculture Hall of Fame in 1977.
Known first for its rod weeders, the company has grown over the last 96 years to manufacture air carts, drills, seeders, packer harrows and bale carriers.
Morris received $4.1 million in a five-year federal agritech grant in 2017.
The Morris family sold the business in 2007 after 58 years of ownership. New owners took over in 2017.
Morris is the second large 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.
Ron Walter can be reached at [email protected]
