News & Analysis as of

Creditors Marijuana Related Businesses

Husch Blackwell LLP

CDTFA Cannabis Creditor: Myths and Truths

Husch Blackwell LLP on

Dealing with creditors is never a fun experience. However, some creditors are more severe than others, especially in the cannabis industry. One of those is the California Department of Tax and Fee Administration (CDTFA),...more

Troutman Pepper

How Cannabis Cos. Are Adapting in Shifting Bankruptcy Arena

Troutman Pepper on

Although the possession and sale of cannabis remain federally illegal under the Controlled Substances Act, the U.S. Department of Justice has largely exercised a general policy of nonprosecution for state-regulated cannabis...more

Fox Rothschild LLP

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

Fox Rothschild LLP on

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

Husch Blackwell LLP

Alternatives to Bankruptcy for Cannabis Companies (Part 3)

Husch Blackwell LLP on

Part 1 of this series discussed the lack of bankruptcy protections for cannabis companies since bankruptcy in the U.S. is an exclusively federal procedure and cannabis remains illegal under federal law and proposed a number...more

McGlinchey Stafford

Podcast: Cannabis and Bankruptcy, Ep. 3: Considerations for Lenders [More with McGlinchey, Ep. 55]

McGlinchey Stafford on

In the final episode of our three-part series, "Exploring Issues in Cannabis and Bankruptcy," McGlinchey's Cannabis Group Co-Chair, Heidi Urness, along with colleagues Timothy Byrd and Rudy Cerone, will delve into the...more

McGlinchey Stafford

Cannabis Creditors Face Receivership in Oregon

McGlinchey Stafford on

It is no secret that cannabis businesses and owners remain largely barred from taking advantage of federal bankruptcy protections, leaving distressed marijuana businesses with limited restructuring options. Most often,...more

Husch Blackwell LLP

Alternatives to Bankruptcy for Cannabis Companies (Part 1)

Husch Blackwell LLP on

The problems facing the cannabis industry arising from its ongoing status as a federally illegal enterprise are numerous and well documented: 280E tax burdens, limited access to banking, exclusion from capital markets, uneven...more

McGlinchey Stafford

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

McGlinchey Stafford on

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

McGlinchey Stafford

Cannabis Companies Lacking Bankruptcy Protections Can Explore State Options

McGlinchey Stafford on

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

Farella Braun + Martel LLP

Alternatives to Bankruptcy in the Cannabis Sector

Recreational or medicinal cannabis is now legal in 35 states and the District of Columbia. But cannabis is still a Schedule I controlled substance under the federal Controlled Substances Act, which presents a host of problems...more

Rivkin Radler LLP

Cannabis Investors and Producers Face Need for Due Diligence

Rivkin Radler LLP on

The cannabis industry is growing in leaps and bounds, but entrepreneurs interested in developing cannabis companies – as well as business people interested in investing in them – must make certain that they know what they are...more

Snell & Wilmer

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

Snell & Wilmer on

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

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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