Former GenCanna committee objects to disclosure, eyes case conversion

By Caroline Salls

Pittsburgh, Aug. 14 – The disclosure statement for the Chapter 11 plan filed by OGGUSA, Inc., formerly GenCanna Global USA, Inc., drew an objection Thursday from the official committee of unsecured creditors appointed in the company’s Chapter 11 case, according to a filing with the U.S. Bankruptcy Court for the Eastern District of Kentucky.

As previously reported, the committee has asked the court to convert OGGUSA’s case to Chapter 7, and it reiterated in Thursday’s objection that the cases should be converted in order to allow a Chapter 7 trustee to evaluate the two main sources of potential recoveries for unsecured creditors.

The committee said those potential recovery sources include claims against MGG Investment Group, LP and claims against the company’s directors and officers.

If the court does not grant the conversion motion, the creditor group said it should still deny approval of the disclosure statement as proposed, as the document “lacks basic information on several important matters.”

Specifically, the committee said the disclosure statement failed to explain financial fraud claims related to OGGUSA’s audit or how those claims may be impacted by proposed releases, the nature of the company’s MGG settlement and other issues related to proposed plan releases.

Winchester, Ky.-based GenCanna is a vertically integrated agriculture-technology company specializing in the production of hemp rich in CBD. The company filed bankruptcy on Feb. 6, 2020 under Chapter 11 case number 20-50133.

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