Glacier FarmMedia — Farmers waiting for equipment purchased from Leon’s Manufacturing are dealing with new uncertainty now that the Yorkton, Sask. company has been placed in receivership.
Ernst and 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 as debtors.
The Bank of Montreal, which submitted the application for receivership, says the named companies owe over $16.6 million.
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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 last year.
In April this year, the Western Producer noted several legal claims filed against the company from farmers who said they had purchased equipment that they had not yet received.
The company had accumulated years of similar complaints, the Producer and Manitoba Co-operator reported as early as 2020.
As of January this year, farmers had registered complaints 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 years.
Ernst and Young said in a notice that those who have questions about the receivership or want to file a claim can contact the receiver at 780-441-4237 or by email.
The Leon’s business dates back to 1952 at Bankend, Sask., about 120 km northwest of Yorkton, where Leon Malinowski operated a welding and machine shop.
Relocating to Yorkton in 1967, the company expanded into product lines including its patented dozer blades as well as land scrapers, front-end loader buckets and bale handlers. The family opened the affiliated Ram Industries at Yorkton in 1973, making hydraulic cylinders for ag equipment and other sectors.
