StateHouse Holdings has announced that StateHouse has made an assignment into bankruptcy according to Canada's Bankruptcy and Insolvency Act.
On September 25, 2024, Pelorus Fund filed a complaint in the San Diego Superior Court seeking, among other remedies, that StateHouse and its various subsidiaries be placed into receivership.
In connection with the Receivership Proceedings, the Company and the Lenders entered into a stipulation dated October 9, 2024 for the appointment of a receiver to preserve the ongoing operations of the business in California. Further updates regarding the Receivership Proceedings in the United States and the operations of the business in California will be provided in due course.
The difficult decision to commence the Bankruptcy Proceedings for the Canadian parent entity, StateHouse, was made following receipt of notice from the Lenders after careful consideration of the current financial condition of the Company and its subsidiaries, the Company's inability to pay their liabilities as they become due, the Receivership Proceedings in the U.S. initiated by Pelorus Fund REIT, LLC and the months-long negotiations between the Company, the Lenders and various other secured creditors of the Company.
Trading on the Canadian Securities Exchange (the "CSE") has been halted and the Company anticipates that trading on the CSE will be suspended and that StateHouse will ultimately be delisted once the bankruptcy is initiated.
For more information:
StateHouse
statehouseholdings.com