SunStream says Michigan court approves order to appoint receiver for Skymint assets

SunStream Opportunities submitted the entry of a stipulated order by the Circuit Court for the County of Ingham, Michigan to appoint a receiver related to all assets of Green Peak Industries and certain affiliates, doing business as Skymint Brands.

SunStream Opportunities is an affiliate of SunStream Bancorp, a joint venture sponsored by SNDL (NASDAQ:SNDL).

SunStream said that the company, via its affiliate Tropics, is the sole senior secured lender to Skymint. The court order follows continuing and uncured events of defaults under certain senior loan agreements linked to a series of debt financings made by Tropics to Skymint (the Loans).

On March 3, Judge Draganchuk appointed Trust Street Advisors, through agent, Gene Kohut, as Receiver over all of Skymint's assets, according to SunStream.

SunStream said the receivership process is aimed to facilitate a path to profitability or complete a sale or restructuring transaction

SunStream noted that it will retain its senior lien position during the receivership process. In the event of sale, SunStream will be entitled to receive the proceeds of its collateral or to credit bid its secured claim to become the new capital and operating sponsor of a restructured Skymint business.

SunStream added that it plans to continue providing working capital financial support to Skymint through the Receivership process. The company thinks there will be limited disruption to Skymint's business and operations during the receivership.

SNDL -1.92% to $1.53 premarket March 13