GREY:BLEVF - Post by User
Post by
DanielDarden123on Jun 05, 2020 6:31pm
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Post# 31118668
CCAA
CCAA I have been following the non-progress of ~15 cannabis companies who have been granted creditor protection by the Court and am seeing many horror stories amongst them. Firstly, it is difficult to see how adding additional costs to failing companies with flawed models, aids in their increasing their cash flow. That is simply a fallacy! Many hard working creditors are asked to absorb losses which are felt in their communities. The resulting job losses far exceed those at the failed cannabis company.
Some have exited CCAA, after a year of committing this carnage, only to still be halted because of non-compliance. Some have attempted name changes hoping that investors would forget the damage caused by their insiders, only to trade at desperate levels.
iMO, the Courts are allowing too many companies to shirk their responsibilities by accepting “hope” as a reasonable prospect of success. Without adequate cash flow, positive working capital, and new management (knowledgeable), the chances of thriving are remote given the additional cost burden of CCAA.