The Cannabist Company Holdings Inc. is operating under a U.S.-recognized Canadian CCAA restructuring, with a Chapter 15 foreign main proceeding order in effect in the District of Delaware since May 9, 2026 (Order Granting RecognitionDkt. 82) and the case now centered on cross-border asset sales and a stipulated resolution with mortgage lender East West Bank heading toward a June 26, 2026 objection deadline.
The Parent Company, a Canadian publicly traded cannabis multi-state operator (Cboe Canada: CBST) with dispensaries and cultivation across eight U.S. states and approximately 1,200 employees, filed its Chapter 15 petition on March 25, 2026 (Chapter 15 PetitionDkt. 1) to obtain U.S. recognition of the CCAA case pending in the Ontario Superior Court of Justice (Commercial List), where FTI Consulting Canada Inc. serves as court-appointed monitor and Curt Kroll of SierraConstellation Partners LLC acts as Chief Restructuring Officer. The filing followed a 2025 transaction that extended senior note maturities to 2028, the company's skipped December 31, 2025 interest payment on those notes, and the launch of a sale process run by Moelis & Company that had already produced closed or signed transactions by the petition date, including the $130 million Virginia sale to Green Leaf Medical and signed Ohio ($47 million) and Delaware ($16.5 million) deals (Kroll DeclarationDkt. 6).
The capital stack carries approximately $220 million of funded debt, anchored by roughly $179 million of first-lien senior secured notes ($166.3 million of 9.25% notes and $12.7 million of 9.0% convertible notes, each due 2028 and issued under Canadian indentures with Odyssey Trust Company as trustee), alongside approximately $40.4 million of first-lien mortgage debt owed by non-debtor subsidiaries to East West Bank (). The IRS separately asserts roughly $51 million of federal income tax claims for 2022 and 2023 under Internal Revenue Code Section 280E, which the Debtors dispute while continuing $500,000 monthly payments to avoid levies.
East West Bank's objection to recognition produced a negotiated carve-out in the recognition order that reserved EWB's rights and set a May 26, 2026 good-faith negotiation window; that dispute has since moved toward resolution through a stipulation requiring EWB approval of 13-week rolling budgets, deeds in lieu of foreclosure or sale of the New York, New Jersey, and Maryland mortgage properties by staggered deadlines running into August 2026, and a Parent Company guaranty release in exchange for mutual releases and waiver of any deficiency claims (Notice of StipulationDkt. 90). The stipulation is subject to approval by both the U.S. and Canadian courts, with objections due June 26, 2026, marking the next material milestone as the Debtors work to consummate the remaining sale transactions inside the recognized CCAA process.
