Steven Schain of Smart-Counsel LLC. Tools to Keep Cannabis Companies From Crashing in Oversaturated Markets
Facing rising interest rates making capital even pricier, coupled with a highly saturated market competing for a limited customer base beset by plummeting prices and diminishing profit margins, it's unclear whether Skymint will be liquidated or reorganized or how other cannabis companies will avoid suffocation during history's most lucrative marijuana market.
March 16, 2023 at 12:02 PM
9 minute read
After defaulting on $135 million of unpaid loans, rent and taxes, Michigan's largest cannabis company Green Peak Innovations Inc. d/b/a Skymint (Skymint) was just thrown into a court-appointed receivership amid a landmark $2.3 billion statewide marijuana market.
While deprived of fundamental debtor tools like bankruptcy protection, cannabis companies may obtain financial distress relief via "workouts" or state law receiverships or assignments for the benefit of creditors (creditors' assignment).
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