Debra BorchardtHigh Times receiver Kevin Singer appears to be back on the job, but this time he has spending limits. High Times, the once iconic publisher of cannabis culture, has been offline for weeks as the company battles through receivership proceedings.
High Times’ lender ExWorks, which is also bankrupt, has been trying to scrape some money out of the ashes of the stoner publication. Stephen Kunkle, the receiver for ExWorks, hired Singer to make sense of the convoluted books at the company owned by Adam Levin. However, Singer’s contract was terminated in June after the receiver’s bill hit $390,716.49.
Singer meticulously accounted for every dollar spent, but the unraveling of High Times’ messy organization proved to be time-consuming. Singer found unpaid state taxes and employment taxes. He found the company’s accounting in disarray, and as he continued to make sense of the mess, more creditors made themselves known and wanted to be paid.
Singer also discovered business contracts that hadn’t been disclosed, making the act of valuing the company’s assets more difficult.
Singer returns
In early July, Kunkle filed a new document with the Los Angeles court stating that Singer was familiar with the estate and wanted him back – but in a limited capacity. Singer is limited to charging his standard rate of $350 an hour. Other associates helping Singer were also given set amounts for the charges of their services.
In the original arrangement, Singer attempted to keep some of the businesses of High Times running in order to maximize the amount of money the properties could sell for. In the new arrangement, Singer will not be involved in the management or control of any assets.
The Receiver shall have no obligation to prepare or file interim reports or inventories, or to do anything in connection with this appointment other than (a) reviewing the Proposed Sale and (b) preparing, filing, serving, and appearing at the hearing on the Motion and any Reply in support thereof (including coordination of public notice of the sale, if needed).
In the pared-down role, if Singer reviews a purchase offer for a High Times asset that looks to be in the best interests of the creditors, he can make a recommendation to the court.
If Singer finds a purchase offer not to be in the best interests of the creditors, he will need to tell the court that he disagrees with the deal and at that point, his limited receivership will be terminated.
High Times no more
The properties of High Times have begun to shut down as the receivers attempt to salvage anything for the creditors. The culture news website went offline weeks ago, and dispensaries using the company’s names have been shutting down as well. The California stores in Redding and Shasta Lake were the last remaining dispensaries with the High Times name, and they closed three weeks ago. This was about the time that Singer’s contract was terminated.
The High Times Cannabis Cup website remains functioning and continues to advertise upcoming events. Green Market Report reached out to the event producer but hasn’t gotten a response.
The Cannabis Cup events became another mess for Singer to untangle after it was discovered that High Times signed a questionable contract with a company called Fiesta Events, which was staffed with Levin loyalists. If the events are continuing and bringing in revenue, creditors will most certainly want a piece of the action.
