Darrel Monette Secures $40 Million as Monette Farms News Faces April 15 Debt
Monette Farms news broke earlier this month when Darrel Monette’s Saskatchewan operation entered Companies’ Creditors Arrangement Act protection and received $40 million to seed this year’s crop. The move came as a $950 million syndicate loan due April 15 and $905 million in secured debt pushed the farm into restructuring.
Darrel Monette said the company had a liquidity shortfall of about $90 million through July, and his affidavit said the syndicate had kept supporting the business despite repeated defaults. That financing gives Monette control of operations for now, while the case moves toward a May 1 expiry on the first order.
Scotiabank Loan and FCC Priority
A syndicate led by Scotiabank worked with Monette to keep the farm afloat after the original $950 million loan, granted Dec. 5, 2018, came due. The loan had $830 million outstanding when it matured, and since October 2024 the lenders had forgiven at least 10 breaches of the agreement.
The syndicate also agreed to make Farm Credit Canada the priority secured creditor. FCC’s outstanding balance stood at $11.8 million, after it provided a $30 million revolving loan in 2024.
Land Sales Near Regina and Havre
Monette sold land near Regina for $41.18 million, 17,000 acres at Havre, Montana, for $47.5 million, and a 12,932-acre farm near Stewart Valley, Sask., for $54 million. The Stewart Valley deal came in at about 158 per cent over the 2025 appraised value.
Second offerings brought in $29 million for 2,553 acres near Hafford, Sask., and $1.78 million for 485 acres at Waldeck, Sask. Other offerings, including Monette’s ranches in British Columbia, did not draw enough bids.
May 1 Court Order
The CCAA order granted Monette $40 million to seed this year’s crop, and he expects to seed about 352,000 acres while selling feeder cattle worth $47.5 million and breeding cattle worth $16.4 million. The cattle proceeds would go toward the priority secured lender.
Within 45 days of the May 1 comeback hearing, the companies plan to seek approval for a sale and investment solicitation process to sell all, or substantially all, of the assets. The Canadian restructuring also triggered a proceeding in U.S. bankruptcy court, putting the next court filing at the center of whether the farm keeps operating while a buyer search begins.
