The Cannabist Company Secures Forbearance Agreement With Senior Noteholders

Event summary

  • The Cannabist Company entered a forbearance agreement with noteholders holding >75% of its $9.25% and $9.00% Senior Secured Notes due 2028.
  • The company missed $120M in interest payments due December 31, 2025, triggering a default event.
  • Forbearance period extends to February 17, 2026, during which noteholders will not exercise remedies.
  • The company recently sold Virginia assets to an affiliate of Millstreet Credit Fund LP.

The big picture

The Cannabist Company's forbearance agreement reflects broader challenges in the cannabis sector, where companies often face liquidity constraints due to regulatory restrictions and limited access to traditional financing. The company's strategic moves, including asset sales and potential restructuring, highlight the industry's need for creative financial solutions amid ongoing market consolidation.

What we're watching

Liquidity Strategy
Whether additional asset sales or other financial transactions can address the company's immediate liquidity needs before the forbearance period ends.
Debt Restructuring
The likelihood of reaching a long-term agreement with noteholders to avoid potential default or restructuring proceedings.
Operational Impact
How the company's strategic alternatives and financial flexibility efforts will affect its operations and market position.

Related topics

Debt Restructuring