Morris assets could be sold to Sask. company

SASKATOON The assets of a Saskatoon-based agricultural equipment manufacturer that went into receivership could be sold to another company with deep roots in the province as early as this month.

Morris Industries Ltd., the public face of a group of companies, received protection under the federal Companies’ Creditors Arrangement Act (CCAA) in January after telling a court it could not pay its debts and continue operating.

Documents filed by its court-appointed monitor indicate that initial efforts to sell Morris Industries’ remaining assets failed to yield an “acceptable” offer, leading to further discussions with prospective bidders.

Just over a month ago, the monitor said in court documents, it received a letter of intent to purchase the troubled companies from Superior Farms Solutions LP, which operates the Regina-based company Rite Way Mfg. Co. Ltd.

The terms of the proposed purchase agreement are not available in public documents. Rite Way declined to comment on Tuesday. Lawyers representing Morris Industries did not respond to a request for comment.

While the deal was originally expected to close June 30, subsequent filings indicate the monitor could ask a court to approve the sale of “all or substantially all” of Morris Industries’ assets this month.