receivership

California Attorney general filed a civil case against Shangri-La Industries in January 2024 seeking the return of more than $100 million in Project Homekey funds and asking the court to place seven properties in receivership.

“The DOJ’s request is almost literally without precedent. No state judge in California history has ever placed a correctional institution into receivership.”

Its lender, Truist Bank, placed the distiller under receivership, alleging that it defaulted on a $26 million loan, court papers show.

At the request of lenders, a judge appointed Trigild, a receivership service, to take control of the 1 million-square-foot property, the Real Deal reported.

“I don’t believe a receivership approach will be successful without changes to the staff and the employment agreement that governs how these halls operate.”