In late April, one of the largest farming businesses in North America filed for financial protection and restructuring. With a court document released on June 1, we’re getting a first look at those next steps for The Monette Group to satisfy its creditors.
From the April filing, it is stated Monette Group held a $950 million secured credit facility dated December 5, 2018, which matured on April 15, 2026. The company is currently under CCAA protection, which is a legal process for insolvent corporations to restructure or sell assets to pay off debts.
What’s new since June 1 is the group is pursuing a Sale and Investment Solicitation Process (SISP) for four types of transactions:
- Sale Proposals
- Land Purchase Proposals (specifically for farmland)
- Investment Proposals (restructuring/recapitalization)
- Refinancing Proposals
Plan To Sell Assets
Since entering creditor protection, Monette Farms has focused on stabilizing its operations. There’s a new $90 million Debtor-in-Possession (DIP) facility provided by Scotiabank, of which Monette Group has drawn down $26 million to maintain ongoing operations.
Since late April, Monette Group has liquidated its cattle inventory to repay Farm Credit Canada (FCC). With ranches in Alberta and Saskatchewan, cattle ranching accounted for approximately 10% of the business’s revenue in 2024 and 17% in 2025.
The Monette Group has proposed a process for court approval to sell all of its land. This includes a request for a streamlined Sale Approval and Vesting Order (SAVO) process for Canadian land sales with an aggregate purchase price of $30 million or less. This is intended to reduce legal costs and administrative burdens by using “desk applications” instead of oral hearings.
Currently, the group owns more than 274,000 acres in Alberta, Saskatchewan (129,000 acres), Manitoba (49,000 acres), British Columbia, Montana, Colorado, and Arizona. Specifically in the U.S. Monette owns 61,700 acres.
Prior to the CCAA filing, Monette’s lending syndicate gave guidance for the business to sell land assets. Two tracts were sold in 2025: in Regina, Saskatchewan for $41.18 million and 17,000 acres of land in Montana for $47.5 million.
Monette Group has coordinated with U.S. counsel to manage the Chapter 15 bankruptcy case alongside the Canadian CCAA proceedings.
Next Steps
The hearing to approve these plans is scheduled for June 12.
All farmland and related property in these jurisdictions are slated to be listed by licensed real estate brokers by June 29, 2026. All land will be sold on an “as is, where is” basis, free and clear of all liens and encumbrances upon court approval. While the binding bid deadline is October 15, the Monitor will begin evaluating successful bids as early as September 1 to meet an October 31 court approval target.
In addition, the group has requested a stay extension to November 13 to allow for Monette Group to complete the growing and harvesting season and to carry out the SISP without the threat of enforcement actions. Monette Group has been authorized to carry on its business to preserve its business and property.
How Did Monette Farms Get To This Juncture?
Since 2010, Monette Group has been aggressively expanding from its family farm in Saskatchewan to Manitoba and British Columbia in Canada. Current President Darrel Monette took over the family farm in 2013. In 2019, the company expanded into the U.S. first in Montana and then Arizona and Colorado. You can read more here.
