Struggling BZAM gets creditor protection

BZAM and its Canadian subsidiaries have applied and got creditor protection to restructure their business and financial affairs.

"Due to, among other things, margin pressures caused by significant competition and the fragmentation of the cannabis industry, and financial underperformance and pressures resulting from obligations owing to creditors, we have been unable to generate positive cash flows and have incurred cumulative losses. After careful consideration of all available alternatives, the board of directors of each member of the BZAM Group determined that it was in the best interest of the BZAM Group and its stakeholders to seek creditor protection under the CCAA," the BZAM team explains.

Bennett Jones LLP is acting as counsel for the BZAM Group in its CCAA proceedings.

Additionally, BZAM wants Court approval to sell its business and assets. The Stalking Horse Transaction is expected to act as the stalking horse bid in the SISP. Additional details in respect of the SISP and the proposed Stalking Horse Transaction will be disclosed shortly.

In addition, BZAM also announced that Kay Jessel resigned from the board of BZAM prior to the board resolving to commence proceedings under the CCAA.

The business operations of the BZAM Group will not be interrupted as a result of the CCAA proceedings.