AgWest and two related numbered companies obtained creditor protection under the CCAA on Oct. 13 and up to $6 million in interim financing from BMO. The company keeps eight branches open and employs about 109 people.
Farm equipment dealer AgWest, together with two related numbered companies, entered a creditor protection process. The Manitoba Court of King's Bench granted protection under the Companies' Creditors Arrangement Act (CCAA) on Oct. 13, following an application by Bank of Montreal (BMO). An amended order dated Oct. 15 extended protection through Jan. 29, 2027, and authorized up to $6 million in interim financing from BMO to sustain operations during the process.
AgWest's eight branches in Manitoba and Saskatchewan remain open, selling equipment and providing parts and service. The company employed approximately 109 people as of Oct. 2. "The only thing I can really say is that AgWest plans on being here to support our customers and have the full backing of our OEMs and bank," said CEO Derrick Webster in an emailed response.
The dealership network carries AGCO brands, including Massey Ferguson and Fendt, as well as CLAAS equipment and other machinery lines.
AgWest's unaudited balance sheet showed approximately $75.8 million in assets, including $59.7 million in inventory, against $73.7 million in liabilities as of Aug. 31. As of Oct. 7, BMO was owed approximately $34.3 million, according to court filings.
BMO issued a default notice in May after AgWest exceeded its borrowing limits and breached a financial covenant. The bank demanded repayment in July.
According to the court-appointed monitor, Alvarez & Marsal Canada, AgWest's financial performance deteriorated during 2025 and into 2026. Lower commodity prices, elevated input costs and higher interest rates squeezed farm income and led customers to postpone equipment purchases.
Discounting and auction activity by competitors in Western Canada also put pressure on used-equipment prices and inventory values.
Those conditions coincided with the demands created by the company's growth. Netherlands-based Zweegers Equipment Group acquired AgWest in 2023, and the dealership group expanded into Saskatchewan and developed new branch facilities. The monitor said those moves, along with changes to branch management, added capital and management pressures.
The monitor reported that AgWest and its advisers had spent nearly a year pursuing a restructuring without securing a solution. Court filings said an impending cash shortfall threatened AgWest's ability to meet payroll.
The amended order empowers the monitor to pursue refinancing and develop a sale and investment process, subject to court approval. No buyer or completed restructuring has been announced in the materials reviewed.
