Ontario · CCAA
Pre-Filing Report of the Proposed Monitor
Pre-filing report · 28 February 2024
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 filing4 verified
- secured creditorsnote: Balance comprised of approx. $20.6M term loan and $11.3M drawn revolving facility, plus accrued interest of $0.4 million stated separately (not summed into amount). Cortland's security also includes a first-ranking debenture (Hamilton Mortgage) over the Hamilton Facility and a general security agreement (Edmonton GSA) giving a floating charge over BZAM's real property, unregistered against Edmonton Facility title but registered as a land charge in the Alberta PPR (see Security Opinion, p.22-23). · page: 12 · as of: 2024-02-28 · amount: 31900000 · debtor: BZAM Group (all Applicants party to the Credit Agreement) · creditor: Cortland Credit Lending Corporation · currency: CAD · security: First-ranking security interest over all present and after-acquired Property of the BZAM Group, except (a) 102 Saskatchewan (not a party to the Credit Agreement) and (b) the Edmonton Facility (subject to a separate first-ranking mortgage held by the Mortgage Lenders); secured, interest-bearing term and revolving credit facility with principal facility limit of $34.0 million
- secured creditorsnote: Related party: Stone Pine is a company ultimately controlled by BZAM's largest shareholder and current Chairman (also the controller of the Stalking Horse Bidder). No interest has been paid to date on the Stone Pine Promissory Notes. · page: 13 · amount: 8515000 · debtor: BZAM Ltd. · creditor: Stone Pine · currency: CAD · security: Second-ranking security interest over all present and after-acquired Property of BZAM, per series of promissory notes (aggregate principal amount)
- secured creditorsnote: Approximate amount owed under the Mortgage Loan at the time of acquisition, secured pursuant to a commitment letter dated May 19, 2021; ranks ahead of Cortland's floating charge with respect to the Edmonton Facility only. · page: 13 · as of: time BZAM Cannabis was acquired by BZAM Holdings · amount: 5000000 · debtor: BZAM Cannabis Corp. · creditor: Mortgage Loan Lenders (Edmonton Facility) · currency: CAD · security: First-ranking mortgage over the Edmonton Facility (the "Edmonton Facility Charge")
- secured creditorsnote: Deemed-trust class claim (excise tax arrears). Listed in the Report under "Unsecured Creditors" but recorded here as a quasi-governmental deemed-trust indebtedness given its priority character. An approximate figure of $9.1 million pre-filing excise tax arrears (undated) is also stated in prose at para 43; monthly excise tax obligations going forward are estimated at approximately $4.0 million. · page: 26 · as of: 2024-02-15 · amount: 9100000 · debtor: TGOD, BZAM Management, and BZAM Labs (collectively) · creditor: Canada Revenue Agency (CRA) · currency: CAD