Subsidiaries of Western Resources Corp. have obtained an Initial Order from the Supreme Court of British Columbia under the Companies' Creditors Arrangement Act, initiating court-supervised restructuring for the entities behind the Milestone Phase 1 potash project in Saskatchewan, Canada.

The court proceeding places an initial stay of proceedings in place until August 31, 2026, shielding the debtors and their assets from creditor enforcement while allowing ordinary business operations to continue. FTI Consulting Canada Inc. has been appointed as Monitor to oversee the restructuring process.

The court also approved interim financing facilities of up to US$1,000,000 from WPC (Jersey) Limited. This funding is intended to support ongoing operations and preserve asset value during the initial restructuring phase, backed by an interim lender charge and an administration charge capped at CDN$500,000 for professional fees.

The debtor subsidiaries remain in possession and control of their assets under the Monitor's supervision as management works to develop a plan of compromise or arrangement for creditors. The restructuring follows financial hardships that previously led to a cease trade order issued by the British Columbia Securities Commission on March 4, 2025.

Site operations at the potash asset had been temporarily suspended on May 21, 2024, when the project was approximately 93% complete, as the company previously sought additional financing to advance toward initial production.

Western Resources has scheduled a subsequent court hearing at the British Columbia Supreme Court for August 31, 2026, to seek an extension of the stay period, along with additional authority to manage the business and preserve asset value during the restructuring process.

Read the full announcement: Western Potash Corp. Obtains Initial Order under the Companies' Creditors Arrangement Act