As part of the Company’s restructuring efforts, the Company has advised the Court of its intention to wind-down the MSS operations within the CCAA proceedings, as this entity has been unable to generate the liquidity required for continued operations.

The Virden dealership operated by MSS will be closing permanently end of day Thursday, March 12, 2020.

The Virden store and its loyal employees have served the local community and surrounding area for the last 53 years. Morris customers looking for their closest dealer for sales, service and parts are advised to locate the nearest dealer by going to the Morris website.

The Company is confident that surrounding dealers will be able to support the needs of existing and future customers of Morris branded products.

Morris Industries Ltd. and its related entities continue to operate within the CCAA proceedings and are working closely with the Court appointed Monitor and various stakeholders to position the Company for success.

Source: Morris Industries Ltd.

The post Closure of Morris Sales and Service Dealership in Virden, MB appeared first on North America FarmQuip Magazine.

In addition to the Stay Extension, the Court approved the Companies’ request for the following:
• Implementation of a Sales and Investment Solicitation Process (SISP);
• Implementation of a Claims Process;
• Debtor in Possession or interim financing (Interim Financing).

The Companies, with the support of the Monitor and their primary secured lenders, believe that a SISP which provides for the greatest flexibility in soliciting interest from various parties for the sale or investment in the shares or assets of the Companies; a refinancing, reorganization, recapitalization, joint-venture, merger, or other business transaction involving the Companies, or some combination thereof, will provide the greatest opportunity for the Morris Group to complete their restructuring. A copy of the SISP and the Monitor’s commentary thereon can be accessed at www.alvarezandmarsal.com/morris (the Case Website).

The Companies, with the support of the Monitor, prepared a Claims Process to establish the amount of creditor claims against the Companies as at January 8, 2020 (the date of the Initial Order). All filed and admitted claims will be considered under a potential plan of compromise and/or arrangement (a Plan) which the Morris Group may present to its creditors and stakeholders.

In accordance with the terms of the Claims Process, all claims must be filed with the Monitor on or before March 2, 2020 (the Claims Bar Date), or forever be extinguished. A copy of the Claims Process and procedures can be accessed on the Case Website. The Companies have been able to secure Interim Financing from Bank of Montreal in the amount of $5.7 million.

Based on the Companies cash flow forecast for the period January 10, 2020 to April 10, 2020, the Interim Financing is anticipated to allow the Companies to continue operations in the ordinary course, and facilitate their restructuring activities during the forecast period. A copy of the Interim Financing terms and the Monitor’s commentary thereon can be accessed on the Case Website.

The Monitor has advised the Court that the Companies were continuing to act in good faith and with due diligence, acknowledged that the Companies required additional time to implement their restructuring activities, and concluded that no creditor would be materially prejudiced by the Stay Extension.

Accordingly, the Court granted the Companies request to extend the CCAA proceedings. The Companies believe that with the support from their secured lenders and additional time to implement their restructuring strategies, the Morris Group will be in the best position to restructure its affairs and formalize a Plan for consideration by their creditors.

Source: Morris Industries

The post Morris Group grants an Extension of their CCAA Proceedings appeared first on North America FarmQuip Magazine.