California’s cannabis industry is a mess. Between the rampant illegal market, onerous taxation, unnecessarily complicated regulations, debt defaults, and a host of other factors, things have never been worse. Businesses big and small are imploding. Without federal bankruptcy protection, the best tool available to insolvent and nearly insolvent companies is gone. So we’re going to start to see a huge uptick in alternative methods of dealing with failing cannabis businesses: receiverships.
What is a receivership?
If you’re not familiar with receiverships, you’re about to learn a lot in the coming years. Here’s a blurb from a post of ours all the way back in 2020:
In California, a receiver is an officer appointed by the court to take possession of and to protect assets for the benefit of all persons who may have an interest in those assets. The receiver is a neutral agent of the court and holds assets for the court, not for the plaintiff or the defendant. A receivership is only a provisional remedy in an action that seeks some other relief by final judgment. In other words, you cannot file a lawsuit for the sole purpose of having a receiver appointed.
The court will outline the
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