(Globe Newswire) Chatham, Ont., Tel-Aviv, Israel — Atlas Global Brands Inc. announced today that further to the company’s news release dated June 2, 2023, Ernst & Young Inc. has been appointed as receiver and manager over certain current and future assets of Atlas Biotechnologies Inc., a direct wholly-owned subsidiary of the company, and Atlas Growers Ltd., together with Atlas Biotechnologies, an indirect wholly-owned subsidiary of the company, under the Bankruptcy and Insolvency Act (Canada) and the Personal Property Security Act (Alberta).
The Atlas subsidiaries’ senior lender, the Agriculture Financial Services Corporation (AFSC), obtained the receivership order from the Court of King’s Bench of Alberta with the consent of the Atlas subsidiaries. The order follows on the company’s decision to cease operations at its facility in Gunn, Alta. and liquidate the assets of the Atlas subsidiaries in an orderly manner as it focuses on cost reductions, savings and production efficiencies across its operations and the cannabis value
As would be expected in the circumstances, the AFSC has also filed a statement of claim against the company with the court in connection with the enforcement of an existing $1.4 million limited parental guarantee of the company in respect of the indebtedness of ABL to the AFSC. The company and the AFSC are in discussions concerning payment plan of the parental guarantee in the event the proceeds from the liquidation of the Atlas subsidiaries’ assets are not sufficient to satisfy amounts due to the AFSC.