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.