DISTRESSED DAILY: Pyxus’ Bet on Cannabis to Pay Debts at Risk

Concerns about the health risks of vaping and competition in the cannabis industry may threaten Pyxus International Inc.’s plans to use its once-hot holdings in pot and e-liquid companies to pay off debt.

• S&P Global Ratings this month cut Pyxus to CCC from CCC+, warning of a potential default as efforts to sell some of its cannabis and e-liquid holdings are taking longer than expected. The proposed sale also may no longer fetch an attractive price.
  • “Several market-related factors, such as excess supply in the cannabis industry, growing concerns about the health risks posed by vaping, and the evolving ...