(This is an abridged version of a story that appears in the August issue of Marijuana Business Magazine.)
Because marijuana is illegal in the United States, financially distressed cannabis-related companies are between a rock and a hard place when seeking relief from creditors.
It’s even difficult for non-plant-touching companies to take advantage of federal bankruptcy reorganization, thanks to the U.S. Trustee Program, which is a part of the Department of Justice.
The Trustee Program recently has stepped up efforts to enforce federal cannabis laws as they relate to personal and business bankruptcy cases, according to the agency.
There’s a glimmer of hope for ancillary cannabis companies, thanks to a recent federal appeals court opinion, but only barely.
“I think federal bankruptcy is mostly off the table,” said Laura Coordes, an associate professor of law at Arizona State University.
But options do exist, according to experts who spoke with Marijuana Business Magazine:
- The plusses and minuses of state receiverships
- Work it out with creditors
- Federal bankruptcy a last-ditch effort but …
Take a look at the U.S. Trustee Program’s marijuana enforcement actions near you.
The federal government /continue even under trump to lie to president as to evidence and to continue to refuse to change the federal laws on cannabis . we thank the law for change for hemp , however the Cannabis plant is still outlawed as to uses of THC and THCA delta 9 THC . this much change and law enforcement must stop / providing real evidence as to any ill effects of intoxication by source of testing in science employment drug testing must be ended for cause of cannabis as they test for THC -COOH which does not even get you high at any measure as THC cooh is store in body and can not be a measurement tool . end of story refuse all drug testing for cannabis
MassVocals
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But options do exist, according to experts who spoke with Marijuana Business Magazine:
The plusses and minuses of state receiverships
Work it out with creditors
Federal bankruptcy a last-ditch effort but …
Take a look at the U.S. Trustee Program’s marijuana enforcement actions near you.