cannabis compromise settlements
- Compromise settlement is an arrangement in which creditors agree to accept less than the total amount of their claims in full settlement of the debt.
- Settlement must be fair—in an amount equal to or, preferably, greater than creditors could expect to receive under a liquidation of the business—and must also be offered without discrimination to all creditors of the same class.
- Funds for the settlement usually come from a third party. Such an approach can provide early cash to creditors and allow a distressed business to continue to serve its customers and employees.
- Ensure equitable recovery by all creditors, funds for the settlement are deposited in special trust funds with and distributed by CannaForm.
Cannabis financial strategy
Covering all areas of the medicinal and adult-use cannabis industry
CannaForm is here to assist with indoor, outdoor, and everything in between.
Edibles, extractions, and all of your manufacturing needs.
Whether it’s the first location in a new jurisdiction or a Type 9 delivery business in Oakland, we are here to help.
Standalone distributor, microbusiness, or vertically-integrated international, CannaForm is at your side.