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Hot Topics in Receivership: Emerging Trends Across Industries

CRA Annual Conference 2025 | St. Louis
Panelists: Robert Hammeke (Dentons), David Wender (Eversheds Sutherland), Jennifer Meyerowitz (SAK Healthcare)
Moderator: Mark Silverman (Troutman Pepper Locke)

Introduction

Receiverships continue to evolve as courts, lenders, and industries face new challenges. At the CRA Annual Conference 2025, the panel “Hot Topics in Receivership” highlighted critical trends shaping the landscape today—from commercial mortgage-backed securities (CMBS) to healthcare, liquor distribution, and the expansion of UCRERA and cannabis receiverships.

CMBS and Real Estate Challenges

The panel opened with insights into the CMBS market, where receiverships are often used to address distressed properties tied to complex financing structures. Issues such as poor property management, tenant improvement (TI) and leasing disputes, and borrowers lacking sophistication remain recurring hurdles.

Healthcare Under Pressure

Healthcare facilities represent one of the fastest-growing sectors in distress. Panelists noted several contributing factors:

  • Heavy regulation and complex reimbursement structures.

  • Labor shortages and rising labor costs.

  • Medical and food supply expenses.

  • Patients living longer, requiring more costly care.

Distressed healthcare facilities often face closure, bankruptcy, or receivership. Receiverships offer advantages such as lower costs than Chapter 11, faster timelines, and greater flexibility in drafting orders. However, they require third-party managers and skilled brokers to oversee operations and facilitate sales.

Trends in healthcare receiverships include:

  • Facilities staying in receivership for longer periods.

  • Investor groups acquiring multiple facilities.

  • Commingling of operating funds with deposits.

  • Courts requiring reserve funds for resident refunds.

  • Shifts in popularity, with assisted living (AL) and memory care (MC) facilities favored over skilled nursing facilities (SNFs).

Liquor Distillation and Distribution

The liquor sector—particularly bourbon—was highlighted as another area of evolving distress. Panelists traced issues back to financing structures, non-traditional ownership, and market shifts post-COVID.

Challenges include:

  • Distributor agreements and channel stuffing.

  • Brand proliferation leading to oversupply.

  • Warehousemen’s liens impacting collateral.

  • Bulk liquidation markets creating uncertainty.

The sector continues to face distress tied to oversupply and financial mismanagement, even as consumer demand remains strong.

UCRERA Expansion

The Uniform Commercial Real Estate Receivership Act (UCRERA) is gaining adoption across the U.S., with states including Alabama, Arizona, Connecticut, DC, Florida, Illinois, Maryland, Michigan, Nevada, North Carolina, North Dakota, Oregon, Rhode Island, Tennessee, Utah, and West Virginia enacting versions of the law.

UCRERA provides:

  • Clearer grounds for appointment.

  • Automatic stay provisions.

  • Authority for sales free and clear.

  • Anti-deficiency protections.

Panelists emphasized that UCERA is increasing the number and scope of appointments, while also aligning state practice with federal equity receivership principles.

Cannabis Receiverships

Finally, the panel addressed the still-emerging area of cannabis receiverships. While federal courts remain unreceptive due to the federal prohibition on cannabis, several states—including Missouri, Washington, and Ohio—have statutes supporting receiverships in this industry. Key challenges include licensure issues, judicial receptiveness, and the willingness of title companies to engage

Conclusion

The CRA panel on “Hot Topics in Receivership” underscored the diverse and evolving challenges professionals face. From distressed healthcare facilities to bourbon distilleries, from UCRERA’s expansion to the rise of federal equity receiverships, the field is adapting quickly to meet new demands.

For receivers, attorneys, and stakeholders, staying informed on these trends is critical to navigating the next chapter of restructuring.