Phoena Holdings Inc. et al., CCAA

Phoena Holdings Inc. et al., a group of Ontario-based cannabis companies, obtained CCAA protection on April 4. The applicants, with the exception of Phoena Holdings Inc. (“Phoena Holdings”) and Elmcliffe Investments [No. 2] Inc. were applicants in previous CCAA proceedings. Phoena Holdings was previously known as CannTrust Equity Inc., and was previously a wholly-owned subsidiary of CannTrust Holdings Inc. On January 5, 2022, the CannTrust group implemented their CCAA plan, and emerged from CCAA protection on March 15, 2022. Despite the efforts to regain market share since the reinstatement of their cannabis licenses and various cost-cutting initiatives, the applicants have struggled to increase revenue to a sufficient level to cover their significant operating costs. They have sustained significant losses as a result of unfavourable systemic factors, including a general over-supply of cannabis in the market and continued price compression pressures. The companies intend to wind-down their operations, seek a potential sale of their business and select a liquidator to assist in the sale of inventory, equipment and fixtures. EY was appointed Monitor, represented by TGF. Miller Thomson is counsel to the companies. Cortland Lending Corporation is the primary secured creditor, represented by Cassels and assisted by financial advisor KSV. Fogler Rubinoff is counsel to secured creditor Balfour Energy Corp.