Cannabis brand SLANG Worldwide announced that it has finalized a wind-down plan for the company and its assets and subsidiaries with its secured lenders under its credit and guaranty agreement dated November 15, 2021. The company said it does not anticipate being able to repay amounts owed under the agreement at the upcoming maturity date of November 15, 2024.
As part of the wind-down plan, the company's assets in Colorado will be placed in receivership. The company also anticipates an assignment into bankruptcy of the pursuant to Canada's Bankruptcy and Insolvency Act and a possible sale of its Vermont subsidiaries of their respective assets.
"Despite the best efforts of the company, it has been unable to attract a viable transaction to restructure its debts and/or seek any sales of the company or of its assets in the normal course," SLANG wrote in a news release. "The difficult decision to approve and enter into the wind-down plan was made after careful consideration of the current financial condition of the company and its subsidiaries, the company's inability to pay its liabilities as they become due, and negotiations between the company and the lenders."
