Bankruptcy (Chapter 11) is not an option for any cannabis related business or investor because from a federal perspective, it is breaking the law.
No bankruptcy judge will touch any business associated with cannabis. As you can imagine, this creates tension and disputes between creditors and business owners when things go sideways, just as they did for one of Strongbow Advisor’s Colorado clients.
After an attempt to file a Chapter 11, a cannabis business was put into a receivership that was not going well. Strongbow's team was brought in to help clean things up.
The operation had a multitude of legal entities, very little cash left in the bank, a box of financial documents in a warehouse and payroll was looming.
In a matter of days after posting the documents to Valid8, the Strongbow team was able to identify missing statements, trace the flow of funds through a myriad of legal entities, and quantify what was owed and what was not, to create context of the legal and financial landscape which quickly led to accelerated settlement discussion with relevant parties.
In this 30-minute session, see how Valid8 eliminates data prep and administrative tasks for your next case.