Overview
On October 24, 2024, CannGroup Development Corp. (the “Company”) filed a Notice of Intention to Make a Proposal (“NOI”) pursuant to subsection 50.4(1) of the Bankruptcy and Insolvency Act R.S.C., 1985, c. B-3 (“BIA”) and Crowe MacKay & Company consented to act as Licensed Insolvency Trustee under the Proposal.
Pursuant to subsection 50.4(8) of the BIA, the initial stay period under the NOI proceeding is from October 25, 2024 to November 23, 2024, unless the period is extended by the Court upon application by the Company. During this period, the Trustee will monitor the business of the Company and assist the Company in preparing its Proposal.
On November 14, 2024, the Company made an application to Court for an order to, among other things,
a) approve the purchase and sale of the lands owned by the Company;
b) authorize and direct the Company to distribute the net proceeds of sale of the lands to a certain party who holds a registered mortgage against the lands;
c) grant an administration charge on the assets, properties and undertakings of the Company in the amount of $150,000;
d) extend the time to file a proposal to January 7, 2024; and,
e) transfer the legal proceedings to the Vancouver division.
The above matter is scheduled to be heard in the Vernon district on Monday, November 18, 2024. Below are copies of the pleadings.
On November 18, 2024, the Court issued an Order in connection with the application for the matters referenced above, with the exception of approving and authorizing the Company to distribute the net sale proceeds of the land to a party holding a registered mortgage against the property. The Proposal Trustee understands that this portion of the application will be sought in Court at a later date.
On January 3, 2025, the Company applied to the Court for an order seeking, among other relief, an extension of the deadline to file a proposal to February 21, 2025, approval of a $100,000 credit facility, and a priority interim financing charge for the lender.
The above matter is scheduled to be heard in the Vancouver district on Tuesday, January 7, 2025. Below are copies of the pleadings.
On January 3, 2025, the Proposal Trustee issued a material adverse change report (the “MAC Report”) pursuant to subsection 50.4(7) of the BIA. A copy of the MAC Report is below.
On January 7, 2025, the Court issued an Order approving an extension of the deadline to file a proposal to February 21, 2025, and approving the $100,000 creditor facility and the associated interim financing charge.
Creditor’s Information
Creditors’ Package – Notice of Intention to Make a Proposal
Legal Documents
Notice of Application re: Sale Approval, Admin Charge, Extension & Transfer
Proposal Trustee’s First Report to Court
Order Made After Application dated November 18, 2024 – Sales Approval
Notice of Application re: Second Extension & Interim Financing
Proposal Trustee’s Second Report to Court
Material Adverse Change Report dated January 3, 2025
Order Made After Application dated January 7, 2025 – Second Extension & Interim Financing
Service List