Multistate hashish grower and retailer iAnthus Capital Holdings introduced a restructuring assist take care of a recapitalization part, giving the corporate a chance to cut back its excellent debt.

The New York-based firm with workplaces in Toronto obtained a requirement for reimbursement on its secured debentures in June after defaulting on curiosity funds.

After a strategic evaluation, iAnthus’ board “concluded that the recapitalization transaction represents the best available alternative to improve the company’s capital structure and to maximize and preserve value for the company and its stakeholders,” iAnthus mentioned in a information launch.

The restructuring assist settlement introduced Monday is supported by all of iAnthus’ secured lenders and greater than 91% of unsecured debenture holders, the corporate mentioned.

The deal would cut back iAnthus’ excellent debt from practically $169 million to about $101 million and supply $14 million in interim financing.

The firm would additionally situation $20 million in new fairness to its secured lenders and unsecured bondholders.

The deal is topic to courtroom approval in Canada.

Interim CEO Randy Maslow mentioned iAnthus has confronted liquidity challenges stemming from a “decline in the overall public equity cannabis markets” mixed with the affect of the COVID-19 pandemic.

The firm trades on the Canadian Securities Exchange as IAN, however buying and selling is presently suspended.

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