“The decision by BioSteel to sail into creditor protection means that Canopy Growth has decided to cut the ropes, limiting further funding into the sinking ship of the BioSteel business unit. This move aligns with Canopy Growth’s vision of transforming into a sleeker, asset-light business model while anchoring its sights on the core cannabis operations,” the company proclaimed in a statement.
A Hopeful Horizon: Seeking Court-Approved Sale
Amidst the storm, there’s a glimmer of hope. The Canadian court procedure paves the way for BioSteel to scout for a court-sanctioned sale, aiming to salvage the worth of its assets. This move under the CCAA temporarily shields BioSteel, putting any proceedings against it on a standstill.
Looking Southward: Chapter 15 Filing
BioSteel doesn’t only have Canadian shores to worry about. Chapter 15 filings are lifeboats that offer bankruptcy protection for U.S. assets owned by international firms. BioSteel is set to wave the flag for the recognition of its Canadian insolvency status in the chambers of U.S. courts, as disclosed by Canopy.
