Invictus MD Strategies Corp IVITF

The CCAA Sham

[DanielDarden123]

With the Monitor recommending acceptance of the Sale Agreement, it is apparent that another “hopeful” cannabis company is about to disintegrate after convincing the Court that it was viable if given some help. About 15 others have also convinced Courts of their viability only to discover that tha assistance was not enough.

In this case the additional costs of the creditor protection outweighed the cash receipts since the Court’s grant by a factor of 3. The beneficiaries of the grant were the Monitor, Lawyers and the CRO who will collect $2.2M totally. ATB, the secured creditor who forced the filing, is able to partially collect on their security while financing the remainder of the loan for the benefit of the buyer. Clearly they did not attain their objective.

Given the costs to society of the Courts and Judges, is it not time to re-examine the value/waste of the CCAA process where obviously failing companies with negative cash flow are persuaded to file for creditor protection by those that have much to gain. Adding costs to an already failing company, seems entirely counter intuitive if you really want it to succeed. Receivership accomplishes the same result without the added cost burden.

[Yowza123]

Perhaps that would be true if all companies in CCAA "disintegrated" as you put it but whether you believe it or not the role of CCAA and the courts is to help these companies remain as going concerns. Sometimes it works, sometimes it doesn't. In this case, we haven't yet seen what the court will decide. The court will be evaluating the current "Plan" (including a Stay