AYR Wellness Inc., the Canadian parent of a large multistate cannabis group, obtained an Initial Order under the Companies’ Creditors Arrangement Act from the Supreme Court of British Columbia on November 17, 2025, initiating a court-supervised wind down of its remaining Canadian assets and triggering the first step in implementing a previously negotiated restructuring support agreement with senior noteholders.
The filing covers only the parent entity. More than 50 US-based subsidiaries operate in Florida, New Jersey, Nevada, Ohio, Pennsylvania, Massachusetts, Illinois, Connecticut, and Virginia. None of these entities sought relief in Canada. The platform included 89 retail stores and 7 cultivation or production facilities as of October 1. The Canadian parent functioned primarily as the public issuer and corporate nerve centre, although its securities have been subject to an OSC cease trade order since June 2025.
The record outlines a group facing a heavy secured capital structure and significant liquidity constraints. Senior noteholders hold 13% secured notes that were originally due in December 2026, with approximately $293 million outstanding by November 2025. Additional secured claims of roughly $214 million sit across a mix of real estate mortgages and operating company loans backed by state-level cannabis assets. The group also owes about $20 million to unsecured creditors. The consolidated balance sheet from March 31, 2025 lists $946 million in total liabilities and $594 million of intangible assets tied to cannabis licenses that are difficult to monetize across jurisdictions.
According to KSV’s Pre-Filing Report, leverage across the group, slow progress on US regulatory reform, shifting competitive conditions, and leadership turnover led to a loss of market confidence. Financial advisor Moelis began exploring refinancing and restructuring options in early 2025, but market conditions and regulatory barriers limited viable alternatives. A US Article 9 sales process launched on October 9 reached 53 parties, with 4 signing nondisclosure agreements, but no qualified bids materialized. The senior noteholder group ultimately delivered the only actionable bid, selecting a credit bid that positions a new acquisition vehicle to take control of substantial US assets.
KSV is the monitor, while Blake Holzgrafe of Ankura is the CRO. Counsel includes DLA Piper for AYR Wellness, Cassels Brock for the monitor, and Goodmans for the ad hoc committee of senior noteholders.
