BMO pushes agricultural equipment dealer AgWest into CCAA over $34.3 million debt

AgWest Ltd., 10159646 Manitoba Ltd. and 10159642 Manitoba Ltd. obtained CCAA protection from the Manitoba Court of King's Bench on October 13, 2026, on application by Bank of Montreal, after the agricultural equipment dealership group defaulted on its lending arrangements and faced an imminent liquidity shortfall that threatened its ability to meet payroll. BMO was owed approximately $34.3 million as of October 7, 2026.

AgWest operates eight agricultural equipment dealerships across Manitoba and Saskatchewan, offering new and used machinery, parts and repair services, agricultural technology, equipment financing support and fleet management. The group employed approximately 109 people as of October 2, 2026. It was acquired by Netherlands-based Zweegers Equipment Group in 2023, during a period of expansion that included entering the Saskatchewan market, developing new branch locations and restructuring branch management. AgWest Ltd. and 10159646 Manitoba Ltd. operate the dealership business, while 10159642 Manitoba Ltd. is their parent company and guarantor of the BMO indebtedness.

According to the monitor, AgWest's financial performance deteriorated significantly during 2025 and into 2026 as lower agricultural commodity prices, elevated input costs and higher interest rates reduced farm income and caused customers to defer equipment purchases. Increased discounting and auction activity by competitors in Western Canada also put downward pressure on used equipment prices and inventory values. The group's expansion and acquisition-related initiatives compounded these challenges, placing additional demands on capital and management resources. The companies and their advisers had been attempting to restructure the business for nearly a year without success.

The financial deterioration led to several defaults under AgWest's May 2023 credit agreement with BMO, including borrowing-limit breaches and failures to meet a fixed charge coverage ratio covenant. BMO issued a notice of default on May 7, 2026, followed by a formal repayment demand and notice of intention to enforce security on July 30. As of August 31, the group reported approximately $75.8 million in consolidated assets and $73.7 million in liabilities, although current liabilities of approximately $75 million exceeded current assets of approximately $68.4 million. Material secured indebtedness totalled approximately $72.5 million, comprising $34.3 million owed to BMO, $10 million to Farm Credit Canada, $7.4 million to CLAAS (an agricultural machinery manufacturer based in Harsewinkel, Germany) and $20.8 million to AGCO Corporation.

The creditor-initiated proceedings are intended to stabilize operations and preserve value while the group evaluates a restructuring, sale or orderly wind-down.

A&M is the monitor with enhanced powers. Counsel includes Torys for BMO, MLT Aikins for the monitor and DLA Piper for the AgWest entities.