AgraCity: the allocation approved, and the office building at $1,255,000

On October 26, in chambers in Saskatoon, Justice G.A. Meschishnick approved the monitor's allocation of the $48.2 million that United Farmers of Alberta Co-operative Limited (UFA) paid for substantially all of the AgraCity group's assets among the companies whose property was sold. The same order extended the group's stay of proceedings under the Companies' Creditors Arrangement Act (CCAA) from October 30, 2026 to January 29, 2027 and approved the Ninth and Tenth Reports of Ernst & Young Inc., the monitor, with its activities and the fees of the monitor and its counsel, per the Order (Stay Extension and Approvals), Oct. 26, 2026, paras. 2–4 and the Tenth Report of the Monitor, Oct. 22, 2026, para. 37.

A second order that day approved the sale of the building at 211 4th Avenue South in Saskatoon, about 10,122 square feet on about 0.16 acres of land, to Foundations Learning & Skills Saskatchewan Inc. for $1,255,000. The monitor elected to disclose the price, and wrote that disclosure was appropriate because the price "materially affects the Allocation Waterfall and the estimated recoveries available to creditors discussed in the Ninth Report," per the Sale Approval and Vesting Order, Oct. 26, 2026, para. 2, Sch. "B" and the Tenth Report of the Monitor, Oct. 22, 2026, para. 27. Both orders were issued on October 27, per the Order (Stay Extension and Approvals), Oct. 26, 2026, p. 2 and the Sale Approval and Vesting Order, Oct. 26, 2026, p. 4.

The monitor had applied for three orders. The third, on the claims of a packaging supplier, Prairie Packaging Inc. (PPI), and of CPIT Corporate, Professional and Industrial Training Ltd. (CPIT), sought the dismissal of PPI's application and declarations about the security each company holds, per the Notice of Application, Oct. 22, 2026, paras. 1, 4. No order on those claims is in the record. The allocation was reported here as a proposal on October 9.

A starting point, approved without prejudice

The allocation the court approved is Table 1.0 of the Ninth Report, which divides the $48.218 million purchase price by the company whose property was sold: $26.5 million to NewAgco Inc. and $1.5 million to Viking Crop Production Partners Inc. for their product registrations, $13.0 million to the Genesis entities, $6.555 million to AgraCity Crop & Nutrition Ltd. and $662,000 to MPower Logistics Ltd. It then takes $2.227 million off NewAgco's share because the Reconciliation Protocol liabilities UFA assumed at closing, approximately $17.8 million, fell short of the $20.0 million the sale agreement contemplated, for an adjusted total of $45.991 million, per the Ninth Report of the Monitor, Oct. 9, 2026, paras. 22, 25, 26(f), Table 1.0. The order approves it "without prejudice to the rights of the Monitor, CCAA Entities, or any other party to bring an application for approval of a distribution protocol at a later date," per the Order (Stay Extension and Approvals), Oct. 26, 2026, para. 4.

The monitor's notice of application described the allocation as dividing the UFA sale proceeds among the companies "as a starting point for the further allocation of the costs of administration, resolution of inter-company debts, and a future distribution," per the Notice of Application, Oct. 22, 2026, para. 13. Its brief set the limits of the application: "With the exception of the approval [of] the Ninth Report and the Allocation itself, neither the Monitor nor the CCAA Entities are seeking any substantive relief in respect of the issues discussed in the Ninth Report," per the Monitor's Brief of Law, Oct. 22, 2026, para. 2. Those issues include the intercompany loans and the three methods the Ninth Report set out for paying the proceeds to creditors, per the Ninth Report of the Monitor, Oct. 9, 2026, paras. 27, 39.

Of the $48.2 million, approximately $19.6 million was paid to the companies in cash, and by October 22 the monitor had distributed approximately $11.1 million of the sale proceeds, $7,747,683 of it to the Business Development Bank of Canada, per the Tenth Report of the Monitor, Oct. 22, 2026, paras. 37–38, Table 2.0.

The extension is meant, the notice says, to give the monitor and the companies time to schedule and adjudicate the outstanding claims of an individual claimant and Farms and Families of North America Inc., to complete the adjudication of a second individual's claim, to file tax returns, to close the building sale, and to "pursue settlement negotiations to resolve other outstanding claims in the Claims Process and advance the Alternative Waterfall," per the Notice of Application, Oct. 22, 2026, para. 9. The Alternative Waterfall is the Ninth Report's hybrid, in which excess proceeds left after NewAgco's creditors are paid in full would go to AgraCity "to increase the amounts available for distribution to AgraCity's creditors," per the Ninth Report of the Monitor, Oct. 9, 2026, para. 39(c).

The monitor reported that the companies "have the financial resources available to meet their obligations through the proposed extension," that in its view they have acted in good faith and with due diligence, and that it had no reason to believe any creditor would be materially prejudiced, per the Tenth Report of the Monitor, Oct. 22, 2026, paras. 50–52. Letting the stay expire, its brief argued, "would subject the Net Sale Proceeds to the very free-for-all that these proceedings were initiated to avoid," per the Monitor's Brief of Law, Oct. 22, 2026, para. 17(e).

Listed at $1,950,000

The two lots at 211 4th Avenue South are held by 101072497 Saskatchewan Ltd. (2497), one of the applicants, in trust for AgraCity; 2497 acquired them from Deer Lodge Hotels Ltd. on November 22, 2021. The companies' first affidavit, sworn in November 2025, said the lands were "currently vacant but were intended to be office space for the Applicants, however renovations have been placed on hold," per the Applicants' first affidavit, Nov. 25, 2025, paras. 59(b), 91.

2497 had the property listed for $1,950,000 under an exclusive listing agreement with Colliers dated May 26, 2025. When the court's May 7, 2026 order authorized the monitor to market the companies' residual property, the monitor kept the listing, and because there had yet to be an offer it asked Colliers for comparable sales data to consider a reduction in the list price. The data, the monitor reports, showed a wide range of values for office buildings sold in downtown Saskatoon, the higher end being "newer, turnkey constructions," while the interior of the 211 Property is unfinished, "requiring additional investment from a prospective purchaser to make the premises suitable for its intended use," per the Tenth Report of the Monitor, Oct. 22, 2026, paras. 23–24 and the Notice of Application, Oct. 22, 2026, paras. 5–6.

Before the monitor decided on a list price, on or about June 19, 2026, Colliers brought it an offer from Foundations. On July 16 the two signed a binding offer to purchase at $1,275,000, subject to conditions that included 45 days for the buyer to satisfy itself on the documents, its due diligence, the build-out construction budget and the City of Saskatoon's zoning for its intended use, and approval by its board. The property was to be bought "as is, where is," and the sale needed the court's approval, per the Tenth Report of the Monitor, Oct. 22, 2026, paras. 25–26. An amending agreement dated September 24, 2026 brought the price to $1,255,000, per the Sale Approval and Vesting Order, Oct. 26, 2026, para. 2 and the Tenth Report of the Monitor, Oct. 22, 2026, App. "B" (amending agreement no. 2, s. 3). The Tenth Report says the parties agreed the reduction after the buyer's due diligence, "due to an issue with the copper wiring within the HVAC structure," per the Tenth Report of the Monitor, Oct. 22, 2026, para. 27.