BC outdoor cannabis growers Good Buds Company Inc. filed a notice of intention to make a proposal pursuant to the Bankruptcy and Insolvency Act.

In a memo from March 6, a representative for the Salt Spring Island-based company emphasized that it has not filed for bankruptcy, nor is it in receivership. 

It’s not uncommon for companies to file such notices as a way to restructure their debt rather than going into bankruptcy proceedings. 

According to the formal notice, the company remains under the control of its management team. “The NOI creates a stay of proceedings and allows the Company a period of up to thirty days to prepare and file a proposal to its creditors unless the period is extended by the court upon application by the Company,” it continues. 

The company also reportedly continues to operate, and all amounts owed as of the date of the NOI will be dealt with as part of the proposal, which is to be filed at a future date.

The company lists more than $18 million in amounts due claimed by creditors, with the most significant amount being $10.6 million to Good Buds Company International. The company also lists Farm Credit Canada claiming to be owed nearly $3.2 million, nearly $3.2 million to the Receiver General of Canada for excise, $26,000 to Health Canada, and about $11,000 to the BC Ministry of Finance.

These amounts are not necessarily in arrears but can simply represent ongoing expenses.

Featured image of Good Buds field on Salt Spring Island

Related Articles

Navigating the world of bankruptcy, restructuring in the cannabis industry

February 5, 2024

Safari Flower Group receives CCAA protection

January 16, 2024

Trees Corporation seeking investment or buyers

January 30, 2024