Saskatchewan Court of Queen’s Bench has granted Saskatoon based Morris Industries, an order extending the stay of proceedings under the companies Creditor Arrangement Act to March 27.
Morris has also been able to secure interim financing from Bank of Montreal of $5.7 million. Its expected to allow the company to continue operations and facilitate restructuring activities.
Morris Group applied for creditor protection last month after experiencing a liquidity crisis.
According to court documents, Morris Industries ambitious and expensive growth strategy allowed it to introduce new products, but was derailed by unforeseen warranty issues, as well as slumping sales attributable to trade wars and poor weather.
The strategy was launched by a new management group, which took over the company in 2017.
