“Navigating Insolvency For Cannabis Business: An Alternative to Bankruptcy or Receivership”

Lance Boldrey and John Fraser authored “Navigating Insolvency For Cannabis Business: An Alternative to Bankruptcy or Receivership” in the Michigan Cannabis Industry Association Magazine. The article discusses how cannabis businesses facing financial trouble may use an Assignment for the Benefit of Creditors (ABC) as an alternative to bankruptcy or receivership. Because federal bankruptcy protections are often unavailable to cannabis companies, an ABC allows a business to transfer its assets to a third party who liquidates them and distributes the proceeds to creditors. In Michigan, this process can help preserve asset value and provide a more efficient way to wind down operations while addressing debts.