Overview
On July 27, 2022, Speakeasy Cannabis Club Ltd. (“Speakeasy”) and 10161233 Canada Ltd. (“1233”) (collectively, the “Companies”) obtained a court order (the “Initial Order”) from the Supreme Court of British Columbia (the “Court”) pursuant to the Companies’ Creditors Arrangement Act, R.S.C. 1985, c-36 (“CCAA”). Crowe Mackay & Company Ltd. has been appointed as Monitor.
The Initial Order provides, inter-alia, a stay of proceedings until and including August 5, 2022 (the “Stay Period”) and may be extended by the Court. During the Stay Period, all parties are prohibited from commencing or continuing legal action against the Companies and all rights and remedies of any party against or in respect of the Companies or its assets are stayed and suspended pursuant to the terms set out in the Initial Order.
On August 5, 2022, the Court granted, among other things, an extension of the stay of proceedings until August 22, 2022. The next hearing is scheduled for August 22, 2022 at 9:00AM in Vancouver, in person.
On August 22, 2022, the Court granted, among other things, an extension of the stay of proceedings up to and including October 6, 2022 and the approval of a DIP facility and charge.
On October 4, 2022, the Companies made an application to Court to extend the time for filing of a proposal to October 20, 2022. The extension was granted by the Court.
On October 17, 2022, the Companies made an application to Court to, among other things, extend the stay of proceedings up to and including January 31, 2023 and approve a sales and investment solicitation process of the assets, undertakings and properties of the Companies. The hearing to consider the aforesaid will be held on October 20, 2022 at 9:30AM. A copy of the Notice of Application is below. The Monitor’s fourth report to Court will be uploaded in due course.
On October 17, 2022, the Companies made an application to Court to, among other things, extend the stay of proceedings up to and including January 31, 2023, and approve a sales and investment solicitation process (“SISP”) of the assets, undertakings and properties of the Companies. The extension and SISP was granted by the Court on October 20, 2022.
On December 30, 2022, the Monitor issued a material adverse change report (the “MAC Report”) pursuant to 23(1)(d) of the CCAA. A copy of the MAC Report is below.
On January 20, 2023, the Monitor made an application to Court for, among other things, an extension to the stay of proceedings up to an including February 28, 2023, a declaration pertaining to the ownership of certain property, and the approval of a sale of the assets by way of a reverse vesting order. The matter was to be heard on January 27, 2023, but was adjourned until January 30, 2023. A copy of the Notice of Application and Report of the Monitor is below.
On or around February 8, 2023, the Monitor incorporated 1399951 BC Ltd. (“9951”) for the purposes of assuming the liabilities of the Companies by way of the reverse vesting order.
On February 28, 2023, the Court granted, among other things, an extension of the stay of proceedings up to and including March 14, 2023.
On April 5, 2023, 9951 filed an assignment in bankruptcy, and Crowe MacKay & Company Ltd. was named as its Trustee (the “Trustee”). A copy of the Certificate of Assignment, the Notice of Bankruptcy, and the Proof of Claim form are below. The First Meeting of Creditors will be held by videoconference and is scheduled for April 24, 2023, at 2 PM (Pacific).
For further information, please contact either of the following:
Mr. Nelson Allan, CPA
Telephone: (604) 697-5209
Email: nelson.allan@crowemackay.ca
Mr. Derek Lai, CPA, CMA, CIRP, LIT, CFE
Telephone: (604) 697-5257
Email: derek.lai@crowemackay.ca
Application Materials
Petition Record (July 27, 2022)
Book of Authorities (July 27, 2022)
Petition to Court filed July 25, 2022
Notice of Application filed August 3, 2022
Affidavit No. of John Parkinson
Notice of Application filed August 18, 2022
Notice of Application filed October 4, 2022
Notice of Application filed October 17, 2022
Notice of Application filed January 20, 2023
Application Response of Marc Geen dated January 27, 2023
Application Response of RC Frontier Labs Ltd. dated January 27, 2023
Affidavit #1 of Preetinder Bhayana
Notice of Application filed February 28, 2023
Court Orders
Initial Order dated July 27, 2022
Amended and Restated Initial Order dated August 5, 2022
Amended and Restated Initial Order (August 5) entered August 16, 2022
Second Amended and Restated Initial Order dated August 22, 2022
Order Made After Application re: Extension of Stay dated October 6, 2022
Order Made After Application re: Extension and SISP dated October 20, 2022
Order Made After Application re: Sale and RVO dated February 1, 2023
Order Made After Application re: Extension of Stay dated February 28, 2023
Creditor Lists
Creditor List (August 17, 2022)
Creditor Notices
Notice to Creditors dated July 27, 2022
Monitor Reports
First Report of the Monitor dated August 3, 2022
Second Report of the Monitor dated August 18, 2022
Third Report of the Monitor dated October 5, 2022
Fourth Report of the Monitor dated October 18, 2022
Material Adverse Change Report of the Monitor dated December 30, 2022
Fifth Report of the Monitor dated January 20, 2023 (unfiled)
Sixth Report of the Monitor dated February 28, 2023
Service List
Service List (August 15, 2022)
Service List (August 18, 2022)
Service List (August 19, 2022)
Service List (September 6, 2022)
Service List (September 22, 2022)
Service List (October 6, 2022)
Service List (January 3, 2023)