Business
Green Growth Brands Obtains Initial Order Under Companies' Creditors Arrangement Act
Green Growth Brands Obtains Initial Order Under Companies' Creditors Arrangement Act.
About this update from Green Growth Brands Inc
[{"type":"text","content":"\n COLUMBUS, Ohio, May 20, 2020 (GLOBE NEWSWIRE) -- Green Growth Brands Inc. (CSE: GGB) (OTCQB: GGBXF) announced today that it and certain of its direct and indirect wholly owned subsidiaries (collectively \"GGB\", the \"Company\" or the “Applicants”) have filed for insolvency protection under the Companies’ Creditors Arrangement Act (Canada) (\"CCAA\") and obtained an order (the “Initial Order”) from the Ontario Superior Court of Justice (the “Court”) granting the Applicants protection under the CCAA. Ernst & Young Inc. (“E&Y”) has consented to act as the Court-appointed monitor (the “Monitor”) of the Applicants.  The Court has granted CCAA protection for an initial 10 day period (the “Initial Period”), subject to extension thereafter as the Court deems appropriate, which expires on May 29, 2020. While under CCAA protection, creditors and others are stayed from enforcing any rights against the Applicants. As previously disclosed, the continuing operations of the Company are dependent upon its ability to continue to raise adequate financing, to commence profitable operations, and to repay its liabilities arising from normal business operations as they become due. The CCAA filing was necessitated due to a severe liquidity crisis in the face of material matured and maturing debt, which liquidity crisis was further exacerbated by the negative impact of the COVID-19 pandemic. The pandemic has forced the Company to indefinitely suspend its cannabidiol business, ultimately resulting in the appointment of a receiver for that business and to restrict operations at the Company's The+Source dispensaries in the Las Vegas, Nevada region as a result of Nevada Governor Stephen Sisolak's March 20, 2020 order limiting dispensary operations in the state. After careful consideration of all other available alternatives, GGB’s board of directors determined that it is in the best interests of the Company and all its stakeholders to seek protection under the CCAA. All Js Greenspace LLC (“All Js” or the “Lender”), one of GGB’s existing secured lenders, has agreed to fund the CCAA proceedings through a debtor-in-possession loan facility (the “DIP Agreement”) in the initial amount (the “Initial Amount”) o...