Entourage Health: the lender is also the owner

The Entourage Group runs a federally licensed cannabis processing and distribution business for the medical and adult-use markets, out of a 26,000 square foot extraction and processing facility at 250 Elm Street in Aylmer, Ontario, per First Report of the Monitor, June 25, 2026, para. 10.

On June 17, 2026 it went into CCAA protection — on an application brought not by the company but by its senior secured lender, per First Report of the Monitor, June 25, 2026, paras. 1–2.

How one party came to hold both ends

The LiUNA Pension Fund of Central and Eastern Canada became the group's principal financial stakeholder in stages, and the sequence is the whole context for this proceeding.

It made an initial equity investment in 2019. It then provided substantial additional financing under a subordinated credit facility. It later acquired the group's senior debt from the Bank of Montreal. And in 2025, an LPF affiliate acquired all of the outstanding equity of Entourage Health Corp. — the ultimate parent of the other debtors — through a plan of arrangement, per First Report, June 25, 2026, para. 11.

The monitor states the resulting position in one line: LPF, through its affiliates, now stands as both the debtors' senior secured creditor and their ultimate indirect equity owner.

As at May 15, 2026, the debtors owed the applicant approximately $240.1 million under the senior and subordinated facilities including accrued and unpaid interest, and the figure continues to rise because there is interest accruing and no debt service being paid, per First Report, June 25, 2026, para. 13.

They also owe roughly $961,000 in excise tax for March 1 to May 31, 2026, per First Report, June 25, 2026, para. 14.

What is being kept and what is being closed

The restructuring had begun before the filing. The debtors had already commenced winding down their adult-use business, and in early June terminated approximately 53 employees in connection with it. As at the report the group employs 22 people, per First Report, June 25, 2026, paras. 12, 37.

The medical business has continued to operate in the ordinary course without significant disruption, with management and the monitor reaching out to critical suppliers about post-filing supply arrangements, per First Report, June 25, 2026, para. 39.

So what goes to market is a licensed medical cannabis business, a facility, and whatever the adult-use wind-down leaves behind.

Marketing had already been tried. From around May 2026 the debtors ran a pre-filing process, contacting several potentially interested parties, preparing materials and a data room. Expressions of interest came in. No executable transaction was identified before the CCAA began, per First Report, June 25, 2026, paras. 40–42.

The relief sought on the comeback

Three things, for the June 29 comeback motion.

An amended and restated initial order adjusting the court-ordered charges, approving a DIP term sheet with a maximum cash draw of $1,100,000, and extending the stay to August 28, 2026, per First Report, June 25, 2026, para. 4(d).

An increase in the directors' charge from $250,000 to $500,000, reflecting estimated director and officer exposure for accrued payroll, vacation pay, sales taxes and excise duty obligations over the longer stay — with the practical trigger that the existing D&O policy expires in early July 2026 and the debtors are still reviewing options to extend it, per First Report, June 25, 2026, paras. 34–36.

And a SISP order authorising the monitor to run a sale and investment solicitation process, per First Report, June 25, 2026, para. 4(e).

The process, and the safeguards around the applicant

This is where the structure of the file drives the design, and it is worth reading closely by anyone acting on a loan-to-own or a sponsor-led filing.