WESTERN PRODUCER – Farmers waiting for equipment purchased from Leon’s Manufacturing are dealing with new uncertainty now that the Yorkton-based company has been placed in receivership.
Ernst & Young has been named the appointed receiver for the case, according to a court order dated June 11. The document names both Leon’s Manufacturing and Ram Industries Inc. as debtors.
The Bank of Montreal, which submitted the application for receivership, says the named companies owe over $16.6 million.
The bank had initially set out repayment demands with a deadline of Aug. 9, 2021. The companies then made “satisfactory arrangements with BMO for BMO to agree to continue to make credit available,” according the bank’s affidavit.
The companies failed to meet their obligations in winter 2023, and a new repayment deadline was set for Jan. 31, 2024.
The owing companies consented to a receiver being appointed in spring 2024.
BMO’s affidavit further pointed to the companies’ difficulty meeting payroll and utilities payments, as well as 15 creditor judgements registered against Leon’s Manufacturing since Aug. 1, 2023.In April 2024, the Western Producer noted who said they had purchased equipment that they had not yet received.
The company had accumulated years of similar complaints, the Western Producer and Manitoba Co-operator . As of January 2024, with the Saskatchewan agriculture ministry, Better Business Bureau and Alberta Farmer’s Advocate Office. The latter said it had been hearing those reports for two years. Farmers complained of paying deposits for equipment that then failed to appear for months or even years.
Those with questions about company assets or who want to file a claim can contact the receiver’s office at 780-441-4237 or [email protected], according to notice posted by Ernst & Young.
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