Sweet Berry Farms secures CCAA protection amid BMO enforcement

Sweet Berry Farms Ltd., a Newfoundland and Labrador-based vegetable producer, obtained an initial order under the Companies’ Creditors Arrangement Act on February 20, 2026, commencing restructuring proceedings as Bank of Montreal moved to enforce its security and seek the appointment of a receiver.

Sweet Berry Farms is incorporated in Newfoundland and Labrador and operates from 27 Farm Road in Black Duck Siding, near Stephenville. The company runs a diversified livestock and vegetable enterprise and is described as one of the largest mixed-use farms in the province. Its business model includes on site cold storage capacity, allowing year round marketing and access to higher value sales windows.

From 2022 onward, the company invested approximately $6.4 million in reconstruction of its cold storage facility and construction of a new turkey barn and hog barn. The company also entered into a large land lease with an intention to purchase neighbouring agricultural lands from M&M Farming Company Ltd., and expended roughly $1.2 million in developing additional vegetable production prior to securing ownership.

As of February 17, 2026, total secured debt was $4,482,588 and total unsecured debt was $863,314, for aggregate liabilities of $5,345,902. Bank of Montreal is the primary secured creditor, owed $3,340,512.

The company experienced financial challenges beginning in 2021 following storage building fire damage that resulted in loss of stored inventory and a reduction of working capital, with insurance proceeds covering only approximately 25% of crop value.

Between September 2024 and July 2025, Sweet Berry pursued financing to acquire leased property, an abattoir, and continued land development. Project financing was ultimately declined, leaving sunk capital, elevated leverage, arrears, and insufficient working capital.

A Farm Debt Mediation process was initiated to address creditor claims and explore refinancing with Bank of Montreal and other secured creditors. The mediation attempt was unsuccessful. Following the failed mediation, Bank of Montreal called its loan and filed a receivership application.

The company’s competing initial CCAA application was granted, with the comeback hearing scheduled for February 27. Sweet Berry intends to continue operating as a going concern while pursuing either refinancing or a court supervised sale and investment solicitation process.

The debtor-in-possession facility is provided by Libra Finance Company, with an initial advance authorized up to $145,500 and a total commitment of up to $350,000.

Grant Thornton Limited was appointed as monitor. Counsel is O’Keefe & Sullivan for the company and McInnes Cooper for Bank of Montreal.