Heritage Cannabis gets creditor protection; lender demands payment

By Wendy Van Sickle

Columbus, Ohio, April 2 – Heritage Cannabis Holdings Corp. and its subsidiaries sought and obtained an order for creditor protection from the Ontario Superior Court of Justice under the Companies’ Creditors Arrangement Act, and its senior secured lender, BJK Holdings Ltd., demanded the company fully pay C$8,421,088 it is owed by Heritage Cannabis, according to a news release.

The amount owed to BJK excludes legal fees of the lender’s counsel.

The company said the decision to commence CCAA proceedings was made after careful consideration of its financial position, while evaluating all available alternatives and engaging in consultation with legal and financial advisers.

The initial order includes a stay of proceedings in favor of the company and its Canadian subsidiaries and the appointment of KPMG Inc. as monitor of the company. It also extends the stay of proceedings to certain U.S. affiliates of the company who are not applicants in the CCAA proceedings.

The board of directors of Heritage Cannabis will remain in place, and management will remain responsible for the day-to-day operations of the company, under the general oversight of the monitor.

Heritage said it plans to seek approval of a sale and investment solicitation process.

Heritage is a Toronto-based cannabis company.

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