Overview
On March 6, 2024, Good Buds Company Inc. (the “Company”) filed a Notice of Intention to Make a Proposal (“NOI”) pursuant to subsection 50.4(1) of the Bankruptcy and Insolvency Act (“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 March 6, 2024 to April 5, 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 March 25, 2024 the Company made an application to Court to approve the granting of an extension of the stay of proceedings and the deadline for the filing of a proposal to May 20, 2024 (the “First Extension”). The stay was extended by Court Order on April 4, 2024.
On May 6, 2024 the Company made an application to Court to approve the granting of an extension of the stay of proceedings and the deadline for the filing of a proposal to July 4, 2024 (the “Second Extension”). The stay was extended by Court Order on May 17, 2024.
On July 17, 2024, a Meeting of Creditors was convened to consider the Company’s Proposal. The Canada Revenue Agency (“CRA”), as the largest unsecured creditor, had previously requested that the Trustee adjourn the meeting to allow more time to consider the Proposal and potentially discuss amendments with the Company. However, the CRA changed its position at the meeting and voted against the Proposal. As a result, the Proposal was rejected by the creditors, and the Company was deemed to have made an assignment into bankruptcy.
On July 18, 2024, the Company made an application to, among other things, annul the bankruptcy. The Court ordered a stay on the deemed assignment into bankruptcy until the application to annul the deemed assignment has been determined. The Company is required to promptly schedule a hearing for the application to annul the deemed assignment in bankruptcy. In the interim, the Company continues to be in possession and control of its operations.
Creditor’s Information
Creditor’s Package – Notice of Intention to Make a Proposal
Court Documents
Notice of Application dated March 25, 2024
Affidavit of Eric Tyler Rumi dated March 25, 2024
Trustee’s First Report to Court dated March 25, 2024
Trustee’s Second Report to Court dated May 7, 2024
Order Made After Application (the First Extension) dated April 4, 2024
Order Made After Application (the Second Extension) dated May 17, 2024
Order Made After Application (Stay of Bankruptcy) dated July 18, 2024