Simply Solventless Announces Endorsement and Support of Restructuring Plan from Secured Debt Holders
Executive Summary
- Plaza Capital and Altek Acquisition Partnership, holders of the majority of SSC’s secured debt (84%), announced they will enter into agreements to support SSC’s court‑approved restructuring announced on February 27 2026.
- The support is intended to preserve shareholder and creditor value, protect the company’s CRA excise licences, and enable continued operation of its subsidiaries and the Humble retrofit project.
- The restructuring includes a proposed Sale and Investment Solicitation Process (SISP) for certain subsidiaries (MHF, CannMart, ANC), with proceeds potentially benefiting SSC if assets are sold at fair market value.
Key Details
- Debt Holdings:
- Plaza Capital holds $3.0 million of the $6.0 million secured convertible debentures (CDs) and acts as collateral agent with decision‑making authority for all CD holders.
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Altek Acquisition Partnership holds $1.0 million of the $2.3 million senior secured promissory notes (PNs).
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Secured Debt Position:
- CDs are second‑secured, behind the PNs.
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Together Plaza and AAP represent 84 % of SSC’s total secured debt.
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Restructuring Objectives:
- Protect subsidiaries from CRA enforcement actions that could result in loss of excise licences.
- Streamline operations by removing “historical and unsustainable liabilities.”
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Maintain the Humble retrofit as a mission‑critical component of the business plan.
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Sale & Investment Solicitation Process (SISP):
- Targets: MHF, CannMart, and ANC (“SISP Entities”).
- Not a liquidation; assets may be sold or retained depending on competitive bids approved by the court.
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Proceeds from any sale will be used to benefit SSC shareholders and stakeholders.
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Management Oversight:
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The SISP is overseen by monitor MNP Ltd.; successful bids require court approval.
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Quotes:
- Sruli Weinreb, Managing Partner, Plaza: “Plaza endorses the Restructuring as we believe it will preserve and enhance shareholder and creditor value….”
- Mike Atema, CEO, AAP: “AAP is supportive of the Restructuring and believes it will benefit both of these positions….”
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Jeff Swainson, President & CEO, SSC: Emphasized protection of licences, continuation of trade, and importance of the Humble retrofit.
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Forward‑Looking Statements: The release contains numerous forward‑looking statements regarding the restructuring, court approvals, financing, and operational outcomes; actual results may differ materially.