Goli Nutrition Inc., CCAA

Goli Nutrition Inc., a Québec-based company which produces nutritional gummies, and its US subsidiary obtained CCAA protection on March 18, listing US$173.5M in liabilities.

The companies started to face financial difficulties in 2022 due to declining demand, litigation, inventory mismanagement and increased competition, among other factors, resulting in a net loss of US$31.4 million in 2022.

In April 2023, BMO, the companies’ senior secured lender, engaged Deloitte as financial advisor.

In June 2023, BMO Capital Markets was engaged to run a pre-filing SISP, but no offers were received by the deadline.

In January 2024, Group KPS, Bastion Capital and founder Deepak Agarwal submitted a bid that was significantly less than the approximately US$99.1 million owed to the lenders, who accepted the offer (a pre-pack RVO transaction). The purpose of the CCAA proceedings and Chapter 15 recognition proceedings is to implement the transaction.

Deloitte is the monitor.

Counsel is Davies for the companies and Norton Rose Fulbright for the monitor.

By: Dina Milivojevic