Update: On May 29, 2020, the Saskatchewan Court of Queen’s Bench extended the stay of proceedings against Morris Industries until July 3, 2020.
Saskatchewan-based seeding equipment manufacturer Morris Industries, which has been in creditor protection since early January, has received a purchase offer from another Saskatchewan-based manufacturer.
Superior Farm Solutions Limited, which operates the Rite Way field equipment business, has submitted a non-binding letter of intent for a proposed acquisition, according to a document published this week by court-appointed monitor Alvarez and Marsal Canada.
The report for the Saskatchewan Court of Queen’s Bench says the letter of intent was executed on May 22, with support from Morris’ largest secured creditor, BMO.
Terms of the offer are still confidential.
Alvarez and Marsal is asking the court to issue a fourth extension to the stay of proceedings against Morris, extending the creditor protection that is set to expire May 29 to July 3. The court-appointed monitor says the extension would give the company time to close the proposed transaction and that it would enhance Morris’ prospects of “effecting a viable restructuring.”
Headquartered in Regina with manufacturing based in Imperial, Sask., Rite Way builds and sells a variety of equipment, including rock pickers, land rollers, heavy harrows, rotary harrows, and crimper rollers.