Leon Mfg. Company Inc. and Ram Industries Inc., Yorkton, Saskatchewan-based manufacturers of material handling equipment and hydraulic cylinders, were placed in receivership on June 11 on application by BMO, owed approximately $16.6 million.

BMO has made credit available to the companies under a total of 84 different credit documents since 2010.

In the winter of 2023, the companies defaulted on their obligations to BMO by, among other things, failing to discharge their financial reporting obligations to BMO, being unable to meet their obligations to nearly all of their utility providers and, in the case of Leon, exceeding payroll account limits and having several judgments registered against it.

BMO demanded repayment in late January and the parties entered into a forbearance agreement on March 1 pursuant to which the companies executed a consent receivership order in favour of BMO. The forbearance agreement expired on April 30.

EY is the receiver.

Counsel is MLT Aikins for BMO, McDougall Gauley for the receiver and Robertson Stromberg for Ram/Leon.