Judge OKs plan for bankrupt GenCanna to repay creditors, MariMed

Judge OKs plan for bankrupt GenCanna to repay creditors, MariMed

Creditors of bankrupt Kentucky hemp producer GenCanna, now called OGGUSA Inc., have a settled a plan to get $1.1 million cash plus a 15% cut of future collections from lawsuits.

The deal, first reported by Law360, settles claims by OGGUSA’s creditors. They’ll be in line to receive a cut of anything OGGUSA gets in its litigation against Southern Tier Hemp, a New York company accused of borrowing some $4 million from OGGUSA and then failing to pay it back.

The bulk of GenCanna’s assets were sold in May to its largest creditor, New York-based private direct lender MGG Investment Group, for $77 million. The company filed for bankruptcy protection in January.

Also last week, OGGUSA reached a separate settlement with one of its investors, MariMed, a Massachusetts-based multistate cannabis operator. MariMed agreed to receive $31 million and drop its claim.