On March 24, 2026, The Cannabist Company Holdings Inc., the Toronto-based public parent of a U.S. multi-state cannabis group formerly known as Columbia Care, and its subsidiary, The Cannabist Company Holdings (Canada) Inc., commenced proceedings under the Companies’ Creditors Arrangement Act (CCAA) in the Ontario Superior Court of Justice (Commercial List), with recognition sought under Chapter 15 of the U.S. Bankruptcy Code. The company had over US$300 million of secured debt on commencement of the proceedings.
The cross-border proceedings represented the first time a U.S. cannabis company accessed protection under the U.S. Bankruptcy Code. The U.S. Department of Justice had previously opposed relief for cannabis companies under the Bankruptcy Code on the basis that such businesses were illegal under federal law and should not be able to access its protections. The filing relied on a number of innovative strategies in the CCAA proceedings, including broad use of a non-Applicant stay of proceedings, to maximize the success of the Chapter 15 proceedings.
The CCAA proceedings were used to obtain protection and complete a creditor-backed, sale-driven restructuring supported by holders of more than 70 percent of the company’s senior secured notes, centred on a series of sale transactions with aggregate value of over US$248 million. These included the sale of the Virginia operations to Parma Holdco LLC for US$130 million (with proceeds applied to redeem approximately US$91 million of senior secured notes ahead of the filing); the sale of the Ohio operations to Holistic Industries Inc. for US$47 million; the sale of the Delaware operations to Parma for US$16.5 million; a Remaining States transaction covering businesses in Colorado, Illinois, New Jersey, Massachusetts, and West Virginia; and the sale of the Maryland operations. The company also used the CCAA proceedings to wind down its operations in New York and Pennsylvania and to sell certain other excluded assets.
Stikeman Elliott LLP acted as Canadian counsel to The Cannabist Company with a team that included Lee Nicholson, Philip Yang, and Brittney Ketwaroo (Restructuring); Martin Langlois and Shawn Blundell (Corporate); Jill Winton (Tax); and Sinziana Hennig (Litigation). Weil, Gotshal & Manges LLP acted as U.S. counsel and Richards, Layton & Finger, P.A. as Delaware counsel to the company in respect of the Chapter 15 proceedings, with Foley Hoag LLP as regulatory counsel, Moelis & Company LLC as exclusive investment banker and financial advisor, and SierraConstellation Partners providing the company’s Chief Restructuring Officer. Goodmans LLP acted as Canadian counsel to the Supporting Noteholders, with Feuerstein Kulick LLP as U.S. counsel, ArentFox Schiff as U.S. counsel in respect of the Chapter 15 proceedings, and Ducera Partners LLC as financial advisor. FTI Consulting Canada Inc. acted as Monitor, with Torys LLP as its counsel and Morris, Nichols, Arsht & Tunnell LLP as its U.S. counsel. Paul Hastings LLP acted as counsel to the buyer of the Virginia and Delaware businesses, and DLA Piper (Canada) LLP as Canadian counsel to the buyers of the Ohio business and the Remaining States.