Bankruptcy Issues in the Cannabis Industry: Strategies Under State and Federal Law for Marijuana, CBD, and Hemp
State-Appointed and Private Receiverships, Alternative Restructurings, Assignments for the Benefit of Creditors, Latest Cases
Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
- work Practice Area
Bankruptcy
- event Date
Wednesday, November 13, 2019
- schedule Time
1:00 PM E.T.
- timer Program Length
90 minutes
-
This 90-minute webinar is eligible in most states for 1.5 CLE credits.
-
This CLE course will examine bankruptcy and insolvency issues presented by the conflict between the legalized use of marijuana in many states and its treatment as an illegal controlled substance under federal law, and provide practical guidance on counseling clients in Cannabidiol (CBD), hemp, and marijuana-related businesses. The panel will review how different courts have ruled--such as the recent 9th Circuit decision in Garvin v. Cook Investments, explain the available federal and state options for distressed companies, and provide innovative strategies and best practices in advising cannabis industry clients.
The expansion of marijuana's legal status across states nationwide has positioned the cannabis industry for massive growth and fueled a surge in cannabis-related business opportunities for marijuana, hemp, and CBD related business. But like any industry, some businesses thrive while others fail. And many of these struggles are heightened because of the unique regulatory challenges. When cannabis related businesses struggle or fail, many seek protection under the Bankruptcy Code.
Most bankruptcy courts that have considered the question refuse to grant bankruptcy relief to those operating in or around the cannabis industry. Underlying these courts' decisions is the tension between state laws legalizing or decriminalizing marijuana and the federal government's treatment of marijuana as an illegal Schedule I controlled substance. Despite the general refusal by courts to grant relief under the Bankruptcy Code, innovative solutions exist for struggling cannabis related businesses. These include assignments for the benefit of creditors, receiverships, creditor compositions, out-of-court sales, and other tools.
Listen as our panel of experienced bankruptcy practitioners reviews how different courts have ruled, discusses trending tactics, explains the available federal and state options for distressed companies, and provides innovative strategies and best practices in advising cannabis industry clients.
- Overview
- Bankruptcy Code
- Caselaw on whether cannabis businesses can obtain relief in federal bankruptcy courts
- Differences between the federal treatment of CBD, hemp, and marijuana related businesses
- Innovative and alternative strategies for relief
- Case studies
- Conclusion
The panel will review these and other high priority issues:
- What are the practical implications of federal and state law conflicts?
- What are the primary marijuana related bankruptcy issues?
- What are the specific techniques counsel should employ when advising a distressed marijuana, hemp, or CBD business?
- What concerns should counsel for cannabis businesses have regarding bankruptcy given the illegal nature of the subject matter under federal law?
