Shiny Bud Inc.

On May 24, 2024, Shiny Bud Inc. (the “Company“) filed a Notice of Intention to Make a Proposal (“NOI”) under Section 50.4 of the Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3, as amended (the “BIA”), and B. Riley Farber Inc. (“B. Riley Farber) was appointed as proposal trustee in the Companies’ NOI proceedings (in such capacity, the “Proposal Trustee”).

The NOI filing provides for a stay of proceedings against the Company, pursuant to s. 69(1) of the BIA, subject to certain limitations, while the Company formulates a restructuring plan and attempts to develop a viable proposal for its creditors.

Relevant documents can be found below.

Status Updates

The Company has scheduled a motion to be heard on June 6, 2024, seeking an Order for:

a) extending the time for the Company to file a proposal pursuant to the Bankruptcy and Insolvency Act to August 7, 2024 (being 45 days from its current expiry of June 23, 2024);

b) authorizing the Proposal Trustee to conduct a process to solicit interest in the sale of the Company’s business, assets and/or shares in the Company (the “Sale Process”);

c) approving the debtor-in-possession interim financing to the maximum amount of $580,000 (the “DIP Financing”) to be provided by Evergreen Gap Debt GP Inc, as agent for and on behalf of Evergreen Gap Debt LP and Gap Debt III LP (“Evergreen”) pursuant to a term sheet dated May 24, 2024 (“DIP Term Sheet”) and a corresponding charge on the property of Shiny Bud (the “DIP Charge”);

d) approving the Administration Charge and Director’s Charge (each as defined below); and

e) approving the First Report of the Proposal Trustee in these proceedings to be filed (the “First Report”) and the Proposal Trustee’s activities set out therein.

A copy of the Motion Record can be found below.

On June 6, 2024, an Order was issued by Justice Steele approving, among other things, that the time for the Company to file a Proposal be extended to August 7, 2024.

A copy of the Order can be found below.

On August 7, 2024, an Order was issued by Justice Kimmel approving, among other things, that the time for the Company to file a Proposal be extended to August 16, 2024.

A copy of the Order can be found below.

On August 16, 2024, an Order was issued by Justice Conway approving, among other things, the subscription agreement dated August 9, 2024 between the Company and 1000973177 Ontario Limited, as purchaser, and the transactions contemplated thereby , the transferring and vesting of all the Company’s rights, title and interest in and to the Excluded Assets, Excluded Contracts and Excluded Liabilities in 1501209 B. C. Ltd. (“Residual Co.“), and extending the stay of proceedings up to and including September 23, 2024.

Relevant documents can be found below.

The Residual Co. failed to file a Proposal with the Trustee on or before September 23, 2024, resulting that Residual Co. being deemed to have made an assignment in bankruptcy on September 24, 2024. The Proposal Trustee was appointed as Trustee (the “Trustee“) of the Estate of the Bankrupt by the Official Receiver, subject to affirmation by the creditors of the Trustee’s appointment or substitution of another Trustee by the creditors.

Creditor Inquiries

For creditor inquiries, please contact:

Erin Merrick
Corporate Insolvency Administrator | Restructuring
T: 437.294.4618
E: [email protected]

The case updates and court filed documents on this website are for information purposes only and you should consult your financial or legal adviser if you have any questions or concerns about your rights or obligations. Additional updates on the status of these proceedings may become available in the future.