A federal bankruptcy judge has approved the sale of the bulk of the assets for GenCanna Global, a hemp processor and CBD product manufacturer based in Winchester, Kentucky, to MGG Investment Group, a New York-based, private direct lender and one of GenCanna’s creditors.
The deal, valued at $77 million, allows MGG Investment Group to recoup its investment, Law 360 first reported.
GenCanna Global did not immediately respond to Hemp Industry Daily’s request for comment.
GenCanna’s Chapter 11 filing on February 4 followed involuntary Chapter 11 bankruptcy petitions filed in January by companies owed money by the Winchester, Kentucky-based firm:
- Crawford Sales.
According to the Chapter 11 bankruptcy case file, privately held GenCanna owed $100 million to $500 million to 50-99 creditors. GenCanna says it has assets in the same range.
MGG Investment Group granted a $65 million loan to Denver-based CBD extractor Mile High Labs, which closed on April 23. Mile High Labs is using the proceeds to pay hemp farming partners, Bloomberg reported.
The lender specializes in lower-middle market companies with $10 million to $40 million in earnings. The company’s website said it excels at “investments in complex and special situations that require distinct underwriting expertise.”