Corner Equipment

Corner Equipment, a Carroll, Manitoba-based company that carries on the business of sales, leasing, rental and service of new and used agricultural machinery and equipment, filed an NOI on June 15, listing $10.0MM in liabilities, including $2.4MM to Farm Credit Canada ("FCC") and $1.5MM to the National Bank of Canada. Part of the reason for the company's desire to seek creditor protection is the fact that FCC, one of the company's floor plan lenders, has taken the position that the company is out of trust with respect to certain equipment sold. Another factor that contributed to the company's financial difficulties is a clear trend of acquiring used equipment at unprofitable valuations. On July 11, the company received an extension of time within which it may file a proposal. While a sale on a going concern basis as well as payment of unsecured creditors are both highly unlikely at this point, an orderly wind down will benefit some of the company's secured lenders. PwC is the proposal trustee. Counsel is Tapper Cuddy for the company, Taylor McCaffrey for FCC and MLT Aikins for the National Bank of Canada.