diff --git a/contractcourt/chain_arbitrator.go b/contractcourt/chain_arbitrator.go
index fef8f00a20..744bf4b4bc 100644
--- a/contractcourt/chain_arbitrator.go
+++ b/contractcourt/chain_arbitrator.go
@@ -582,9 +582,6 @@ func (c *ChainArbitrator) Start(beat chainio.Blockbeat) error {
 	// Set the current beat.
 	c.beat = beat
 
-	log.Infof("ChainArbitrator starting at height %d with budget=[%v]",
-		&c.cfg.Budget, c.beat.Height())
-
 	// First, we'll fetch all the channels that are still open, in order to
 	// collect them within our set of active contracts.
 	if err := c.loadOpenChannels(); err != nil {
@@ -694,6 +691,11 @@ func (c *ChainArbitrator) Start(beat chainio.Blockbeat) error {
 		c.dispatchBlocks()
 	}()
 
+	log.Infof("ChainArbitrator starting at height %d with %d chain "+
+		"watchers, %d channel arbitrators, and budget config=[%v]",
+		c.beat.Height(), len(c.activeWatchers), len(c.activeChannels),
+		&c.cfg.Budget)
+
 	// TODO(roasbeef): eventually move all breach watching here
 
 	return nil
@@ -1065,8 +1067,8 @@ func (c *ChainArbitrator) WatchNewChannel(newChan *channeldb.OpenChannel) error
 
 	chanPoint := newChan.FundingOutpoint
 
-	log.Infof("Creating new ChannelArbitrator for ChannelPoint(%v)",
-		newChan.FundingOutpoint)
+	log.Infof("Creating new Chainwatcher and ChannelArbitrator for "+
+		"ChannelPoint(%v)", newChan.FundingOutpoint)
 
 	// If we're already watching this channel, then we'll ignore this
 	// request.
diff --git a/contractcourt/channel_arbitrator.go b/contractcourt/channel_arbitrator.go
index 0725947ce9..9131c72e8b 100644
--- a/contractcourt/channel_arbitrator.go
+++ b/contractcourt/channel_arbitrator.go
@@ -2954,6 +2954,10 @@ func (c *ChannelArbitrator) handleBlockbeat(beat chainio.Blockbeat) error {
 	// Notify we've processed the block.
 	defer c.NotifyBlockProcessed(beat, nil)
 
+	// Perform a non-blocking read on the close events in case the channel
+	// is closed in this blockbeat.
+	c.receiveAndProcessCloseEvent()
+
 	// Try to advance the state if we are in StateDefault.
 	if c.state == StateDefault {
 		// Now that a new block has arrived, we'll attempt to advance
@@ -2972,6 +2976,59 @@ func (c *ChannelArbitrator) handleBlockbeat(beat chainio.Blockbeat) error {
 	return nil
 }
 
+// receiveAndProcessCloseEvent does a non-blocking read on all the channel
+// close event channels. If an event is received, it will be further processed.
+func (c *ChannelArbitrator) receiveAndProcessCloseEvent() {
+	select {
+	// Received a coop close event, we now mark the channel as resolved and
+	// exit.
+	case closeInfo := <-c.cfg.ChainEvents.CooperativeClosure:
+		err := c.handleCoopCloseEvent(closeInfo)
+		if err != nil {
+			log.Errorf("Failed to handle coop close: %v", err)
+			return
+		}
+
+	// We have broadcast our commitment, and it is now confirmed onchain.
+	case closeInfo := <-c.cfg.ChainEvents.LocalUnilateralClosure:
+		if c.state != StateCommitmentBroadcasted {
+			log.Errorf("ChannelArbitrator(%v): unexpected "+
+				"local on-chain channel close", c.id())
+		}
+
+		err := c.handleLocalForceCloseEvent(closeInfo)
+		if err != nil {
+			log.Errorf("Failed to handle local force close: %v",
+				err)
+
+			return
+		}
+
+	// The remote party has broadcast the commitment. We'll examine our
+	// state to determine if we need to act at all.
+	case uniClosure := <-c.cfg.ChainEvents.RemoteUnilateralClosure:
+		err := c.handleRemoteForceCloseEvent(uniClosure)
+		if err != nil {
+			log.Errorf("Failed to handle remote force close: %v",
+				err)
+
+			return
+		}
+
+		// The remote has breached the channel! We now launch the
+		// breach contract resolvers.
+	case breachInfo := <-c.cfg.ChainEvents.ContractBreach:
+		err := c.handleContractBreach(breachInfo)
+		if err != nil {
+			log.Errorf("Failed to handle contract breach: %v", err)
+			return
+		}
+
+	default:
+		log.Infof("ChannelArbitrator(%v) no close event", c.id())
+	}
+}
+
 // Name returns a human-readable string for this subsystem.
 //
 // NOTE: Part of chainio.Consumer interface.