Appian takes Western Potash into CCAA over stalled Saskatchewan potash project

Western Potash Corp., Western Potash Holdings Corp. and 0907414 B.C. Ltd. were granted protection under the Companies’ Creditors Arrangement Act on August 21, 2026, on application by senior secured lender WPC (Jersey) Limited, an affiliate of Appian Capital Advisory LLC.

Appian advanced at least $85 million under an April 28, 2022 credit facility secured against the debtors’ assets, including the Milestone potash project approximately 35 kilometres southeast of Regina. The facility required quarterly principal repayments of about US$4.15 million through March 31, 2028 and carried interest of 12.5% annually, plus default interest. By August 2026, unpaid interest had reached US$16.8 million, and Appian delivered a demand and section 244 notice on August 7.

Milestone includes 84,557 acres of mineral leases and 65,405 acres of freehold leases and has a reported mine life of approximately 40 years, with targeted production of 146,000 tonnes annually. More than $240 million has been invested in the project, but it has never reached commercial production. Construction was suspended in May 2024 while additional financing was sought, and the project remains in care and maintenance. Another approximately $149.45 million would reportedly be required for the next phase of development, including two additional horizontal caverns and commissioning work.

The debtors’ financial problems stemmed from repeated project delays, cost overruns and unsuccessful attempts to raise new capital. Proposed investments of $80 million in 2024 and $100 million later that year did not advance. FTI Capital Advisors was retained in October 2025 and contacted 110 potential counterparties, but its six-month strategic process failed to produce an acceptable transaction and was terminated on August 14, 2026. Meanwhile, builders asserted or obtained judgments exceeding $928,000, municipal taxes exceeded $1 million and the debtors fell behind on mineral lease payments and provincial sales taxes.

FTI now proposes a 14-week SISP. Potential bidders would receive data room access beginning September 8, with non-binding offers due October 21 and binding bids due December 7. An auction, if required, would take place December 11, with a successful bid selected by December 14. Applian is providing a DIP facility.

FTI is the monitor with enhanced powers. Counsel includes Norton Rose Fulbright for Appian, Dentons for the debtors, and Stikeman Elliott for the monitor.