Bankruptcy and Creditors' Rights

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Despite the excitement of many over rescheduling cannabis from Schedule I to Schedule III, the move does not make cannabis “legal” unless it is produced, sold, and used within the tightly regulated parameters of the Controlled Substances Act (CSA). Many medical and adult-use cannabis stores and products that currently exist in approximately four-fifths of the United States are not in compliance with the CSA. These businesses violate federal law now, and they will still be violating federal law if and when cannabis is rescheduled; rescheduling does not make the conduct federally legal.
Continue Reading Impacts of Cannabis Rescheduling on Bankruptcy

This is the third installment in our three-part series: “Exploring Issues in Cannabis and Bankruptcy.” In this final episode, we’ll explore what the two recent decisions in Blumsack and Hacienda mean for creditors in the cannabis industry and also what rights are available to lenders and marijuana financiers in the bankruptcy context.
Continue Reading Podcast: Cannabis and Bankruptcy, Ep. 3: Considerations for Lenders

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, distressed marijuana businesses and businesses serving the marijuana industry (collectively, MRBs) must instead rely on state law, including state-specific cannabis…

Continue Reading Cannabis Creditors Face Receivership in Oregon

This is the second installment in a three-part series exploring issues in cannabis and bankruptcy. In this episode, we’ll dive into bankruptcy protections available to businesses, including a case in which the Bankruptcy Court rejected a categorical prohibition for all debtors with any connection to marijuana.
Continue Reading Podcast: Cannabis and Bankruptcy, Ep. 2: Considerations for Businesses

We often look to the federal judiciary as the gold standard of American jurisprudence. However, when it comes to the rapidly evolving cannabis industry, the federal judiciary has been anything but consistent.
Continue Reading To Put It Bluntly, the Federal Judiciary’s Inconsistent Approach to the Cannabis Industry Is (Reefer) Madness

The trend to legalize the medical and recreational use of marijuana continues to blaze through the states, but federal law — and bankruptcy courts by extension — have not yet followed suit.[1]

Bankruptcy courts have historically prevented cannabis — and even cannabis-ancillary companies — from filing for protection under the…

Continue Reading Pot Cos. Can Rely On State Law For Bankruptcy Safeguards

The Conference of State Bank Supervisors (CSBS) has sent letters to the U.S. House of Representatives and the Senate, stressing the importance of providing safe harbor for financial institutions offering financial products and services to cannabis or cannabis ancillary businesses under the proposed Secure and Fair Enforcement (SAFE) Banking Act.
Continue Reading Will the Push for a Bank Safe Harbor on Cannabis Succeed?

Featured Podcast Episode

Securing Retail Space for Your Cannabis Business (Episode 2 of 2)

Obtaining retail space for any small business is a big move. There are many issues to consider, and working with a knowledgeable real estate lawyer helps to avoid surprises down the road. This episode discusses licenses for retail space for cannabis businesses from the landlord and tenant perspective. Hosts also review issues unique to the cannabis business when renting retail space.