Bankruptcy can be a helpful tool for distressed businesses.
The process allows a business to stop collection actions, discharge certain debts, cancel unfavorable contracts and provide breathing room to restructure the business.
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If your plant-touching cannabis operation is struggling or failing, however, the bankruptcy court will not provide protection to businesses that work with high-THC cannabis, or marijuana.
Enter the state court receivership.
Paula Durham (Photo courtesy of J.S. Held) Scott Evans (Photo courtesy of J.S. Held)
Receivership is an equitable remedy that is often employed as a bankruptcy alternative.
A receivership can address business insolvency or be a temporary remedy during legal proceedings between disputing business partners, with control of the enterprise hanging in the balance.
In either scenario, the court-appointed receiver takes control of the business and must assess the posture of the business to determine the best path forward.
The receiver’s options run
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