Troubled Cannabis Operator Schwazze Nears Debt Restructuring

While the marijuana industry awaits potential key regulatory changes that could boost profits, Schwazze is closing in on a restructuring with creditors that will slash the dispensary operator’s debt load and inject it with new money.

The company will give up some of its more than 60 cannabis shops in return for a $65 million cash injection, according to people familiar with the situation. The senior lenders will take over the properties in a process known as Article 9, a cheaper and faster process than Chapter 11. Bankruptcy isn’t an option for the company because of the lack of federal legislation covering weed.