Quebec · CCAA
Report of the Proposed Monitor
Pre-filing report · 16 June 2022
AI summary
A plain-English summary drawn only from this filing: what it is, why it matters, and the parties, amounts and dates it turns on.
What we verified from this filing3 verified
- financial positionnote: Shareholder deficit of $45.2M as at April 30, 2022; significant contingent liabilities from Secured Debenture Holder and Langley, BC landlord not reflected in these totals. Prior audited comparative (year ended Dec 31, 2020, per Appendix C): total assets $237,791,893 and total liabilities $159,358,850 (page 21). · page: 5 · as at: 2022-04-30 · basis: Estimated/draft balance sheet prepared by Proposed Monitor using the Zenabis Group's consolidated trial balance for the nine-month period ended April 30, 2022; unaudited, filed under seal as Appendix B · scope: Consolidated - Zenabis Group (all Applicants) · currency: CAD · total assets: 83300000 · total liabilities: 128500000
- secured creditorsnote: High Trail has not provided any financing directly to the Zenabis Group; security was registered to guarantee an approximately $185M loan provided to Hexo (parent company) - a related-party guarantee structure. Security validity/opinion pending independent review by Monitor's counsel. · page: 5 · debtor: Zenabis Group · creditor: HT Investments MA LLC (High Trail) · currency: CAD · security: Second-ranking security interest registered over the assets of the Zenabis Group in the amount of $700M per entity (registration ceiling, not an outstanding balance)
- secured creditorsnote: Wholly owned subsidiary of Sundial Growers Inc. Amount per internal financial statements; ongoing dispute since early 2021 regarding interest, fees and royalties owing. Intends to act as Stalking Horse Bidder in the SISP. Security opinion pending (independent review by Monitor's counsel underway). · page: 5 · as of: 2022-04-30 · amount: 52100000 · debtor: Zenabis Group · creditor: 2657408 Ontario Inc. (Secured Debenture Holder) · currency: CAD · security: First-ranking security interest over all assets of the Zenabis Group in provinces where the Secured Debenture Holder initially registered its security