News & Analysis as of

Controlled Substances Act Bankruptcy Court Marijuana Related Businesses

Fox Rothschild LLP

Outlook Still Hazy for Cannabis Companies’ Access to Bankruptcy

Fox Rothschild LLP on

If finalized, the Drug Enforcement Administration’s (DEA) recent recommendation to reclassify cannabis from a Schedule I to a Schedule III substance has the potential to open important doors to businesses in the legal...more

Seyfarth Shaw LLP

Budtender Bankruptcy Blindside

Seyfarth Shaw LLP on

In a recent legal development that underscores the intricate interplay between federal bankruptcy law and the cannabis industry, a court case has emerged involving a bankruptcy filing by an employee of a cannabis company....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

Seward & Kissel LLP

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

Seward & Kissel LLP on

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...

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

Fox Rothschild LLP

In re The Hacienda Company, LLC – a Flicker of Hope for Distressed Cannabis Companies: Can Non-Operating Cannabis Companies...

Fox Rothschild LLP on

Until recently, the bankruptcy courts have generally been unavailable for insolvent cannabis companies to liquidate or reorganize.   The Office of the United States Trustee (the “UST”) has a mandate from the Department of...more

Nelson Mullins Riley & Scarborough LLP

The Unfair Contradiction of the Conflict of State and Federal Laws on the Bankruptcy Proceedings of Dispensary Employees

There is seemingly, in the opinion of a great number of bankruptcy courts, a conflict between the United States Bankruptcy Code requirements that a debtor reorganize or liquidate “in good faith,”  the federal Controlled...more

Patterson Belknap Webb & Tyler LLP

Bankruptcy Court Won’t Dabble in Case Concerning a Marijuana Business

“[E]nsnared between his involvement in a business that is legal under the laws of Arizona but illegal under federal law,” one debtor’s chapter 13 petition was recently dismissed due to his undisputed violations of the...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

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

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

Burns & Levinson LLP

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

Burns & Levinson LLP on

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

Dechert LLP

Securitizing Marijuana Dispensary Properties in the Sessions Era

Dechert LLP on

In 2013, the Obama administration issued the Cole Memorandum, which called a truce between federal prosecutors and marijuana businesses operating legitimately under state law. After regime change in Washington, however, it...more

McAfee & Taft

Extreme caution in marijuana contracts: Bankruptcy relief not available

McAfee & Taft on

With the passage of SQ788, Oklahoma voters have created a new industry rife with opportunities for Oklahomans. From cultivation, processing, and selling, as well as the services that will support medical-marijuana businesses,...more

Nelson Mullins Riley & Scarborough LLP

High Court Faced with the Issue of Marijuana Legalization in Bankruptcy

It was only a matter of time before the budding state laws legalizing marijuana use ran up against the federal government’s treatment of the drug as a controlled substance – and what better place for the two sides to meet...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

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