Dragich Law Firm Prevails in Michigan Court of Appeals on Key Receivership Issues in Skymint Case

On August 26, 2025, the Michigan Court of Appeals issued a published opinion in the Skymint receivership, ruling in favor of the court-appointed receiver Gene Kohut—represented by The Dragich Law Firm—on two important issues of first impression under the Michigan Receivership Act.

The Court’s ruling affirmed:

1. That a receiver has authority under the Michigan Receivership Act to reject an executory contract, including a lease; and
2. That a receiver may reject one lease while assuming another lease with the same landlord, even if the leases contain cross-default provisions.

This is a meaningful step forward in consummating the sale process for Skymint—and a significant development in Michigan receivership law.

Because cannabis companies remain ineligible for federal bankruptcy protection, state court receiverships have become the primary vehicle for financial restructuring in the industry. Yet the legal framework is still evolving, with limited precedent. This ruling helps define and clarify the powers available to receivers navigating complex lease structures and distressed assets.

Over the past several years, Dragich Law Firm has served as counsel to the receiver in two of the largest cannabis receiverships in Michigan.

David Dragich and Amanda Vintevoghel-Backer spearheaded the firm’s work on the matter, guiding the legal strategy that led to this important appellate victory.