Brittany Ketwaroo

The Applicants sought an Amended and Restated Initial Order in their CCAA proceedings during a 10-day comeback motion.

The requested relief included extending the stay period, approving a Key Employee Retention Plan (KERP) and corresponding charge, appointing a Chief Restructuring Officer, approving financial advisor engagements, and sealing the unredacted KERP.

The court found the relief appropriate and necessary for the restructuring process, noting the support of the Monitor and the majority of secured noteholders.

The motion was granted in its entirety.

The Receiver brought a motion for an order requiring the debtor and its principal to pay $143,000 to the Receiver.

The funds represented the HST portion of a lease termination settlement paid to the debtor prior to the receivership.

The debtor argued the funds were not 'Property' under the receivership order because they were subject to a statutory deemed trust in favour of the CRA.

The court held that the funds arose from the debtor's real property and fell within the definition of 'Property'.

The court declared the funds must be paid to the Receiver, who would determine priorities in due course.

The Applicants, operating a fully integrated cannabis business across the United States, sought an Initial Order under the CCAA due to severe liquidity constraints and an inability to meet interest obligations on senior notes.

The court granted the Initial Order, including a 10-day stay of proceedings, which was extended to non-applicant subsidiaries to maintain stability and preserve value for pending sale transactions.

The court also appointed FTI Consulting Canada Inc. as Monitor, authorized the payment of certain pre-filing arrears to critical suppliers, approved Administration and Directors' Charges, granted a limited sealing order for confidential commercial information, and authorized the Parent Company to act as foreign representative for Chapter 15 proceedings in the United States.