News & Analysis as of

Chapter 11 Marijuana Related Businesses

Tonkon Torp LLP

Distressed Cannabis Companies Find Hope with New Bankruptcy Ruling, Potential Substance Rescheduling

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A recent court decision shows an evolving stance toward cannabis companies facing financial distress and seeking bankruptcy protection. Taken together with the U.S. Department of Health and Human Services recommending that...more

Seward & Kissel LLP

Gateway Drug? Catch 22, No & Arrow, Genesis Reaches the End, and Monster Win?

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Bankruptcy court refuses to dismiss marijuana industry debtor Chapter 11 case| Reuters - The U.S. Bankruptcy Court for the Central District of California has refused a motion to dismiss the Chapter 11 Bankruptcy case for...more

Fox Rothschild LLP

In re The Hacienda Company, LLC – Round 2: Bankruptcy Courts May be Available to Non-Operating Cannabis Companies to Liquidate...

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As discussed in our earlier blog post, In re The Hacienda Company, LLC – a Flicker of Hope for Distressed Cannabis Companies: Bankruptcy May be Available to Liquidate Assets of Non-Operating Cannabis Companies | In Solvency...more

McGlinchey Stafford

Podcast: Cannabis and Bankruptcy, Ep. 1: Considerations for Individuals [More with McGlinchey, Ep. 53]

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Starting a cannabis business is often discussed, but maintaining a business, particularly during a downturn in the industry, is a completely different ballgame. Pockets of the cannabis industry are experiencing financial...more

Foley Hoag LLP - Cannabis and the Law

Court Allows Cannabis-Related Company to Liquidate Stock in Bankruptcy

While most bankruptcy cases have denied access to federal bankruptcy courts for cannabis and cannabis-related businesses, a Nevada bankruptcy court allowed a chapter 11 case to continue where the Debtor sought to liquidate,...more

Tonkon Torp LLP

Bankruptcy Doors Open a Little Wider to Cannabis Companies

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In January, a California bankruptcy court issued an opinion providing another lifeline to cannabis companies that could benefit from the protection of the federal bankruptcy code – to reorganize or liquidate assets. The...more

DarrowEverett LLP

Does Involvement in the Cannabis Industry Preclude Your Business From Bankruptcy Protection?

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Despite the growing public acceptance of marijuana and the fact that a majority of states have legalized marijuana for medicinal purposes (37 states and the District of Columbia have enacted medical marijuana legislation),...more

McGlinchey Stafford

Cannabis Companies Lacking Bankruptcy Protections Can Explore State Options

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As the trend to legalize the medical and recreational use of marijuana continues to blaze through the states, federal law, and bankruptcy courts by extension, have not yet followed suit....more

Fox Rothschild LLP

The Uncertain Future Of Cannabis Bankruptcies And The 2020 Elections

Fox Rothschild LLP on

As the pendulum of American politics has shifted once again, cannabis is back on the menu. The change in presidential administrations, along with sweeping approval by voters in those states where legalization of cannabis was...more

Perkins Coie

Another Blow to Bankruptcy Relief for Marijuana-Adjacent Debtors

Perkins Coie on

Though it appeared the smoke might blow in a more favorable direction, the hopes of marijuana-adjacent businesses using the Bankruptcy Code were snuffed out once again by the Bankruptcy Court in Colorado. The Controlled...more

The Rodman Law Group, LLC

Bankruptcy Alternatives for the Cannabis Industry

As many Americans are faced with the fallout of the COVID-19 pandemic, some business owners are now tasked with creating a clear path forward without traditional means of financial relief. Of its many tragic consequences,...more

Buchalter

Solutions and Alternatives to Bankruptcy in the Cannabis Industry and Financing Options Available

Buchalter on

A Marijuana Related Business (or MRB), whether a plant-touching operation or a provider of goods and services to a plant-touching operations cannot seek protection from the Bankruptcy Court as Bankruptcy Court is a Federal...more

Amundsen Davis LLC

Cannabis Related Collections Still A Race To The Courthouse

Amundsen Davis LLC on

On April 20, 2020, a company called United Cannabis Corp. filed a Chapter 11 bankruptcy case in the United States Bankruptcy Court for the District of Colorado. United Cannabis listed debts to its 20 largest creditors at over...more

Foley Hoag LLP - Cannabis and the Law

United Cannabis Corp.’s Chapter 11 Filing Provide Another Test Case for Industry

On April 20, United Cannabis Corporation filed a Chapter 11 bankruptcy petition for reorganization in Colorado. The Bankruptcy Court for the District of Colorado has previously dismissed bankruptcy cases for marijuana...more

Lowndes

Marijuana Tenants and the Effects on Landlord’s Rights in Bankruptcy

Lowndes on

Though states continue to legalize the use and sale of marijuana for medicinal and recreational uses, under federal law, marijuana remains an illegal “Schedule 1” drug pursuant to the Controlled Substances Act. ...more

Bradley Arant Boult Cummings LLP

Marijuana-Related Debtors' Case Survives Dismissal in Ninth Circuit - Cannabis Industry News Alert

A recent decision by a federal appeals court appears to open the doors of United States Bankruptcy Courts nationwide… or does it? The Ninth Circuit’s decision from Garvin v. Cook Investments provides a helpful roadmap for...more

Snell & Wilmer

Is a Bankruptcy Plan that Violates Federal Criminal Law Proposed in Bad Faith?

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Although legal in many states, marijuana remains illegal under federal criminal law. See 21 U.S.C. § 856(a)(1). One would think that engaging in illegal activity under federal criminal law would preclude relief under federal...more

Davis Wright Tremaine LLP

Decision of the Ninth Circuit Court of Appeals in Garvin v. Cook Investments NW, Case No. 18-35119 (9th Cir. May 2, 2019)

In an earlier update, we told you about an appeal pending in the U.S. Court of Appeals for the Ninth Circuit that would decide whether a landlord receiving rent from someone involved in the state-legal cannabis industry could...more

Burns & Levinson LLP

Sowing the Seeds of Marijuana Bankruptcy: a Look at Garvin v. Cook

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In a recent post, we discussed the ongoing personal bankruptcy case In Re Adair, in which a a United States Trustee is seeking to have the court dismiss a Chapter 13 plan of an individual that is employed by a...more

Burns & Levinson LLP

Don’t Bank(ruptcy) On It: In re Adair

Burns & Levinson LLP on

The U.S. Justice Department (“DOJ”) has said that an Oregon woman who is employed by a marijuana staffing agency cannot use bankruptcy protection because of her firm’s ties to the cannabis industry. The U.S. Trustee—a DOJ...more

Davis Wright Tremaine LLP

Ninth Circuit Considers Availability of Bankruptcy to Cannabis-Related Businesses

The value of the legitimate cannabis industry in the United States (measured by annual sales) is rapidly approaching $10 billion and expected to exceed $20 billion within the next five years....more

Obermayer Rebmann Maxwell & Hippel LLP

Bankruptcy Courts Just Say No to the Marijuana Industry

Despite growing public acceptance of marijuana and the wide-spread passage of state laws legalizing marijuana for medicinal and even recreational purposes, marijuana remains a criminal offense under federal law which presents...more

Burr & Forman

Court Denies Creditor’s Motion to Dismiss Chapter 11 Case Despite Multiple Factors in Favor of Dismissal

Burr & Forman on

In a recent case out of the bankruptcy court for the Southern District of Florida (the “Court”), a secured creditor moved to dismiss a debtor’s bankruptcy case “for cause” based on the debtor’s bad faith filing. The debtor...more

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