Manitoba Dealer AgWest Seeks Lifeline

LINCOLN, Neb. (DTN) -- One of Manitoba's largest equipment dealership networks has been given a temporary lifeline to stay in business while it seeks new financing, pursues a sale or develops a restructuring plan, as the Manitoba Court of King's Bench granted protection from creditors.

AgWest Ltd. could be heading toward liquidation as the company was unable to meet payroll obligations in the middle of harvest season, according to a document filed by the company's bank, the Bank of Montreal.

AgWest serves farmers at six dealerships in Manitoba at Elie, Morden, Brandon, Neepawa, Russell and Benito, as well as two locations in Saskatchewan at Weyburn and Yorkton.

AgWest Ltd. has defaulted on more than $34 million in loans, according to an opening brief in a restructuring proceeding under Canada's Companies' Creditors Arrangement Act.

"Since 2026, the AgWest entities have experienced significant financial difficulties, including liquidity challenges and a general inability to meet their obligations as they become due," the Bank of Montreal said in a filing with the Manitoba Court of King's Bench.

"As a result of these financial difficulties, the AgWest entities have defaulted under a loan agreement with BMO dated May 1, 2023."

The court granted AgWest a 10-day stay on court proceedings through Oct. 23, and the bank has asked the court to extend protection from creditors through Jan. 29, 2027, according to the filing.

This is to allow AgWest and the bank to explore restructuring options.

AgWest has been having trouble meeting payroll for its 109 employees, according to the filing.

"Based on the cash flow projections in the proposed monitor's pre-filing and first report, the AgWest entities do not have sufficient cash to meet their upcoming payroll obligations during the week of Oct. 12, 2026," the bank told the court. "For the week ending Oct. 16, 2026, the AgWest entities' net cash flow, including payroll, is projected to be negative approximately $944,000, against only approximately $868,000 of cash on hand."

The Bank of Montreal issued a default notice to AgWest on May 7, 2026. AgWest reportedly has $75.7 million in assets and about $73.7 million in liabilities, according to court documents.

An affidavit filed by the bank shows that shareholders of AgWest, ZBG Capital I B.V., were unwilling to inject more capital into the business and were instead "advancing discussions with potential new equity providers."

According to court documents, the bank is expected to seek another court order granting up to $6.6 million in debtor-in-possession financing and the approval of a restructuring and sale process.

AgWest this week announced on its Facebook page that it was changing hours of operation at its branches in Morden and Neepawa and was not going to be open on Saturdays.

Netherlands-based Zweegers Equipment Group acquired AgWest in 2023. In May 2024, AgWest announced plans to build new dealerships in Brandon and Russell in Manitoba.

In January 2025, AgWest expanded operations into Saskatchewan by acquiring facilities from Agriterra Equipment in Yorkton and Weyburn, bringing AgWest's total dealerships to eight.

In August 2025, after temporary pauses, construction resumed on western Manitoba facilities in Brandon and Russell. In February 2026, AgWest officially opened its new facility in Brandon.

Todd Neeley can be reached at todd.neeley@dtn.com

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