Handling Receiverships for Cannabis Businesses

This webinar explores the legal and operational realities of cannabis receiverships, including preserving licenses, managing assets under court supervision, and navigating complex state regulations. Whether you’re an attorney, banker, lender, or operator, you’ll gain practical strategies to protect value and maintain compliance in one of the industry’s most challenging scenarios.

Event Description

As lending to cannabis operators enters the cannabis banking discussion, more institutions will confront distressed credits, defaults, and operational breakdowns where bankruptcy may be impractical or impossible. Receivership is a court-supervised tool that can stabilize an operator, safeguard collateral, and maintain licensing/compliance so assets retain value during transition or sale. For banks and credit unions, understanding when and how a receivership works is essential risk mitigation.

This session demystifies cannabis receiverships from a lender’s perspective. We’ll translate legal mechanics into plain English: what a receiver actually does, how operations and cash controls are managed, what happens to licenses and inventory, and how court orders protect stakeholders.

Attendees will leave with a clear, actionable framework to evaluate whether a receivership is appropriate and what to expect from day one through exit (sale, wind-down, or turnaround)

Key Takeaways:

  • When to Choose Receivership: Over workout, forbearance, UCC foreclosure, or ABC; typical triggers and red flags.

  • Petition & Order Mechanics: Drafting goals, scope of authority, bonding, and immediate control of bank accounts, POS, and inventory.

  • Maintaining Regulatory Compliance: License status during receivership, required notices to regulators, inspections, METRC/seed-to-sale continuity, and cash handling.

  • Sales of assets/businesses: Marketing, court approval, timelines, and buyer due diligence expectations.

  • Triggers: That indicate receivership may preserve value better than alternatives.

Are you interested in more than one of our webinars? Consider a membership to maximize your benefits and education with the ACB. For one flat price, you get year-long access to our full content library AND our Fundamental + Advanced Cannabis Banking Professional Professional Certifications!