An anonymous director reports

WESTERN POTASH CORP. OBTAINS INITIAL ORDER UNDER THE COMPANIES' CREDITORS ARRANGEMENT ACT

Western Resources Corp.'s subsidiaries, Western Potash Corp., Western Potash Holdings Corp. and 0907414 B.C. Ltd. (collectively, the debtors), have obtained an initial order from the Supreme Court of British Columbia (Vancouver Registry) under the Companies' Creditors Arrangement Act (Canada) (CCAA) effective 12:01 a.m. Vancouver time on Aug. 21, 2026. The court proceeding bears file number S-266288.

Pursuant to the initial order, FTI Consulting Canada Inc. has been appointed by the court as the monitor, an officer of the court, to oversee the CCAA proceedings. The monitor's dedicated case website is available on FTI Consulting Canada's website.

Key terms of the initial order

1. Stay of proceedings

An initial stay period is in place until Aug. 31, 2026. Subject to limited statutory exceptions, no creditor or other party may commence or continue any action, proceeding or enforce remedies against the debtors, their assets and business without the written consent of the monitor or leave of the British Columbia Supreme Court. The stay also restricts counterparties from terminating, altering or repudiating material contracts, licences, permits and critical service arrangements with the debtors, subject to paying for goods and services supplied on or after the order date. The debtors remain obligated to pay for new postorder goods and services in the ordinary course of business.

2. Continued business operations

Under the initial order, the debtors remain in possession and control of their assets and will continue operating their business in the ordinary course during the CCAA restructuring process, subject to the rights and powers granted to the monitor and the terms of the interim lender commitment letter, including authorization to the debtors to pay, among other things, postorder ordinary-course operating expenses and rent, as well as preorder date eligible employee wages, benefits, certain critical supplier obligations, postorder operating expenses and statutory remittances, including payroll deductions, sales taxes and municipal property taxes. The debtors may not make principal or interest payments on pre-CCAA indebtedness absent court or monitor authorization.

3. Interim financing

The court approved interim financing facilities from WPC (Jersey) Ltd. in an aggregate principal amount up to $1-million (U.S.), plus applicable interest, fees and expenses. This interim financing is intended to support continuing operations and preserve asset value throughout the initial restructuring phase. The interim lender's charge ranks second behind the administration charge (capped at $500,000 (Canadian)) for the monitor and legal professional fees. Both charges enjoy priority over most pre-existing security interests and encumbrances of the debtors.

4. Restructuring process

The Debtors, under supervision of the monitor, intend to develop a plan of compromise or arrangement for creditors. Under the initial order, the debtors can disclose information, under the supervision of the monitor and confidentiality protections, to prospective investors, buyers and strategic partners for purposes of negotiating or completing the restructuring or related transactions.

5. Subsequent hearing

A subsequent hearing is scheduled for Aug. 31, 2026, at the British Columbia Supreme Court, for purposes of seeking extension of the stay period and any ancillary relief. At such hearing, the debtors expect to seek additional authority from the court, subject to the oversight of the monitor, to enable the company and its management to more actively manage and operate the business and its assets during the restructuring process and to pursue opportunities to preserve and enhance value. The debtors intend to work constructively with the monitor while seeking that additional authority.

6. Cross-border recognition

The initial order requests recognition and assistance from courts and regulatory bodies outside Canada. The monitor is authorized to pursue recognition of the CCAA proceedings under Chapter 15 of the U.S. Bankruptcy Code, as may be appropriate.

We seek Safe Harbor.