CASE Study
Accelerate Out of Court Workouts
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 Somerset Capital’s Colorado clients.
After an attempt to file a Chapter 11, a cannabis business was put into a receivership that was not going well. Somerset Capital'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 Somerset Capital 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.
Process
Outcome
Customer Testimonials
“Given the box of documents, there was no way to get a handle on things in a reasonable timeframe that would hold up in Court/civil suit without Valid8.”
“We are in the business of shortening the time to resolution… The business was losing money, things were breaking, and we didn’t have the luxury of time to pursue things to the ends of the earth.”
“Being able to identify a very specific time frame for which additional statements were required, sped up and strengthened our Subpoena requests.”
Need to prepare evidence? Help your team follow the flow of funds faster.
