The Cannabist chapter 15 case now has recognition in place: the Delaware bankruptcy court entered an order recognizing the Canadian CCAA proceeding as a foreign main proceeding, extending U.S. stay and asset-protection relief while the debtors continue their Canada-led wind-down and sale process under the foreign representative’s control Recognition OrderDkt. 82.
The case began on March 25, 2026, when The Cannabist Company Holdings Inc. filed a chapter 15 petition in Delaware for recognition of its Ontario CCAA proceeding, with the parent acting as foreign representative for itself and its Canadian affiliate Chapter 15 PetitionDkt. 1. The filing followed pressure on a cannabis multi-state operator with roughly $220 million of funded debt, including about $179 million of senior secured notes, $40.4 million of mortgage debt at non-debtor subsidiaries guaranteed by the parent, and disputed IRS tax exposure tied to Section 280E; the debtors sought U.S. provisional relief to prevent creditor actions, contract terminations, IRS enforcement, and other disruption to an ongoing asset-sale strategy Kroll DeclarationDkt. 6.
The restructuring path is not a standalone U.S. plan process. Before and around the CCAA filing, Cannabist had pursued asset sales with Moelis, including a closed Virginia sale, signed Ohio and Delaware transactions, and a closed California Mission Bay sale, while entering a support agreement with holders of about 60% of the senior notes to facilitate an orderly wind-down and sale of remaining assets in Colorado, Illinois, Maryland, Massachusetts, New Jersey, and West Virginia . On May 8, Canadian counsel reported that the Ontario court had extended the CCAA stay through May 29, 2026, approved SCP as CRO, and that East West Bank had appeared in Canada but had not sought stay relief there as of that date .
Near term, the U.S. recognition fight has largely shifted from whether recognition will enter to how creditor-specific issues are resolved. The recognition order preserves East West Bank’s rights and gives the parties until May 26, 2026 to negotiate, after which EWB may pursue an expedited hearing if no resolution is reached, with the automatic stay remaining in place as to EWB pending that process Recognition OrderDkt. 82. With recognition entered, the May 12, 2026 Delaware hearing was cancelled, and an unrelated stay-relief motion was adjourned to a date to be determined Cancelled Hearing AgendaDkt. 83.
