Glacier FarmMedia— A Saskatoon court has ordered the sale of the property and assets of Ram Industries Inc. in Yorkton, Sask.
The company was placed in receivership last June, ordered bankrupt in late January and on Feb. 27 the Court of King’s Bench approved the sale to 102203996 Saskatchewan Ltd. for an undisclosed price.
The buyer is Parkland Welding and Machine, according to court documents. It emerged in mid-December after a months-long process.
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Receiver Ernst and Young had asked for offers in late September. Nine parties submitted 13 offers to purchase or liquidate.
None were deemed acceptable, but one liquidation proposal was superior, the documents state.
In the meantime, Eagle Hydraulic asked to submit an amending offer and negotiations continued until Parkland’s intervening offer Dec. 16. One month later the two bidders were advised to submit their best and final offers.
Ram and Leon Manufacturing made hydraulic cylinders and agricultural equipment, respectively. The family owned companies were both in business for more than 50 years but began having cash flow problems several years ago.
There were numerous customer complaints about Leon’s, in particular, because it couldn’t provide products in a timely way or at all and wanted money up front for orders. Some took the company to court to get their money back.
E&Y did not return a request for more information on what is happening with Leon’s property and assets. The court documents show some assets were sold while the company was in receivership.
The court has ordered details of the Ram sale sealed for now. The receiver said it was concerned about disclosing details before the Leon buildings were sold and asked for a longer sealing period than usual.
Bankruptcy court filings show Leon’s total liabilities at nearly $19 million. Unsecured creditors account for $12.1 million of that. Its assets are estimated at about $6.5 million.
Ram’s total liabilities were $17.7 million, offset by assets worth just more than $5 million.
