BMO appoints receiver over Sask Valley Processors in $13.1 million enforcement

The Court of King’s Bench for Saskatchewan appointed Grant Thornton Limited as receiver over Sask Valley Processors Inc. and its guarantor, 11115375 Canada Inc., on January 5, 2026, following an application by Bank of Montreal, the companies’ secured lender.

The companies operate in the grain and oilseed milling sector and conducted their business from a grain handling facility located in Loreburn, Saskatchewan. Sask Valley Processors Inc. is a Saskatchewan corporation, while 11115375 Canada Inc. is a federally incorporated entity registered to carry on business in Saskatchewan and Ontario.

The lending relationship arose from a Letter of Agreement dated February 9, 2024, under which Bank of Montreal extended credit facilities that included an operating loan facility, a standby letter of credit, an equipment secured masterline, a real estate financing loan, and a corporate MasterCard. The companies’ obligations were secured by comprehensive security, including Saskatchewan PPSA general security agreements granted by both the debtor and guarantor, a general assignment of debts, Bank Act security, and an all-indebtedness mortgage granted by the guarantor over Saskatchewan real property.

Bank of Montreal alleged that the companies defaulted under the credit agreement by failing to meet obligations as they became due, including required monthly interest payments and the timely delivery of required margining reports. The lender further asserted that the companies failed to provide required financial reporting information. As a result, on December 5, 2025, Bank of Montreal issued demand letters and served notices of intention to enforce security.

As at December 3, 2025, the total indebtedness owing to Bank of Montreal was approximately $13.1 million. The companies appeared to have ceased active business operations and the real property from which they previously operated appeared to be unoccupied, giving rise to concerns that its security was in jeopardy.

Grant Thornton Limited consented to act as receiver and was appointed to take possession of, secure, and realize on the companies’ assets for the benefit of stakeholders.

Bank of Montreal is represented by MLT Aikins LLP, while M LAW acts as counsel to the receiver.