GenCanna Global Files for Chapter 11 to Implement Financial and Operational Restructuring Plans
Secures $10 Million In DIP Financing From Existing Senior Lender and Will Evaluate all Strategic Options to Maximize Value
WINCHESTER, Ky. – February 06, 2020–(BUSINESS WIRE)–GenCanna Global USA, Inc. (“GenCanna” or the “Company”) announced today it has filed a petition for voluntary Chapter 11 reorganization with the U.S. Bankruptcy Court in the Eastern District of Kentucky (the “Court”). The filing will allow GenCanna to continue to operate its business without interruption to customers, vendors, partners and employees while working through a reorganization plan that could include refinancing of the Company’s existing indebtedness, or an alternative restructuring transaction such as a sale.
GenCanna has obtained approximately $10 million in post-petition debtor-in-possession (DIP) financing from its senior lender, which, subject to Court approval, will provide the Company with liquidity to maintain its operations in the ordinary course of business during the Chapter 11 process.