SunStream Opportunities LP, an affiliate of SunStream Bancorp Inc., a joint venture sponsored by SNDL Inc. in Calgary, Alberta, Canada, has submitted the entry of a stipulated order by the Ingham County Circuit Court for the appointment of a receiver with respect to all assets of Green Peak Industries, and certain affiliates, doing business as Skymint Brands.
On March 3, Judge Joyce Draganchuk appointed Trust Street Advisors LLC, through its agent, Gene R. Kohut, as receiver over all the assets of Skymint, which operates 25 cannabis stores in Michigan, along with two grow operations and a 1,000-acre sun-grown, sustainable farm.
SunStream, through its affiliate Tropics LP, is the sole senior secured lender to Skymint. The order follows continuing and uncured events of defaults under certain senior loan agreements in respect of a series of debt financings made by Tropics LP to Skymint, which launched operations in fall 2018.
The order was jointly submitted by Skymint and Tropics LP and entered by the court. Skymint’s business was deemed to be in jeopardy, and to protect against unnecessary diminution of value of the Skymint business, the receiver was appointed.
The receiver is authorized and directed by the court to take immediate possession and full control of the relevant Skymint assets. The receivership process is designed to facilitate a path to profitability or complete a sale or restructuring transaction.
SunStream will retain its senior lien position during the receivership process and, in the event of a sale transaction, will be entitled to receive the proceeds of its collateral or to credit bid its secured claim to become the new capital and operating sponsor of a restructured Skymint business. Pursuant to the order, Skymint is directed to cooperate with the receiver for the orderly transition of the management of the receivership property.
Existing employees and certain key management will potentially remain in place to provide operational and management services to the receiver. SunStream intends to continue to provide working capital financial support to Skymint throughout the receivership process and remains committed to the success of the Skymint business as a going concern.
SunStream believes that this additional financing will help stabilize Skymint’s operations and maximize the value of the receivership property. As SunStream, Skymint, and the receiver are cooperating in the orderly transition of the Skymint assets, SunStream believes there will be limited disruption to the business and operations of Skymint during the receivership.
SunStream will provide further updates regarding its loans interests as the receivership process progresses.