Innomalt seeks creditor protection after losses mount at new Bécancour malt plant

Innomalt Inc. filed an NOI on August 12, 2026, after losses mounted during the first years of operation of its Bécancour malt production facility, leaving the company unable to address its financial obligations outside a formal restructuring. The Quebec malt producer has since obtained a 45-day extension of its stay of proceedings, to October 26, while it runs a sale and investment solicitation process for the business.

New Bécancour malt producer

Innomalt was incorporated in 2014 and operates a malt production facility in the Bécancour Industrial and Port Park. The plant began operating in 2024 and has potential production capacity of approximately 15,000 tonnes annually.

The company produces malt for breweries, distilleries and food companies and has more than 350 active customers. Approximately 95% of its revenue comes from Quebec, with the balance from Ontario and the Maritimes. Innomalt employs seven people.

Revenue growth outweighed by mounting losses

Revenue rose from approximately $1.4 million in fiscal 2024 to $1.9 million in 2025 and $3 million in 2026, as the plant ramped up. But losses grew faster. Innomalt was roughly break-even in fiscal 2024, then recorded a $3.8 million net loss in 2025 and an $8.2 million net loss in 2026, for cumulative losses of approximately $12 million over the three-year period.

By July 31, 2026, Innomalt reported approximately $57.4 million of assets against $62.4 million of liabilities. Assets were concentrated in the Bécancour facility and equipment, with a net book value of approximately $54.5 million.

Secured debt totalled approximately $29.1 million, owed to Investissement Québec ($11.4 million), Caisse Desjardins de Godefroy ($8.5 million) and Farm Credit Canada ($8.5 million). Unsecured advances totalled approximately $26.2 million, from Delimax/Jafaco, La Coop Novago, La Coopérative Vivaco and Desjardins Capital de Risque.

Sale process underway, NOI extended to October 26

With the proposal trustee and its secured lenders, Innomalt launched an investment and sale solicitation process, aimed at selling all or substantially all of its assets on an "as is, where is" basis. A teaser went to prospective buyers on September 4. Non-binding offers are due September 30, with a binding offer expected in October and closing targeted for November 2026.

Deloitte is the proposal trustee. Therrien Couture Joli-Cœur represents Innomalt. Lavery represents Investissement Québec, and Norton Rose Fulbright represents Caisse Desjardins de Godefroy.