(That is an abridged model of a narrative that seems within the August concern of Marijuana Enterprise Journal.)
As a result of marijuana is illegitimate in the US, financially distressed cannabis-related corporations are between a rock and a tough place when searching for reduction from collectors.
It’s even tough for non-plant-touching corporations to reap the benefits of federal chapter reorganization, because of the U.S. Trustee Program, which is part of the Division of Justice.
The Trustee Program lately has stepped up efforts to implement federal cannabis legal guidelines as they relate to private and enterprise chapter instances, in line with the company.
Company information exhibits 88 enforcement actions since 2010, with 53 (or 60%) of these occurring in 2017 and 2018. Greater than 50% of these actions have been for instances in California, Colorado and Oregon.
There’s a glimmer of hope for ancillary cannabis corporations, because of a latest federal appeals courtroom opinion, however solely barely.
“I believe federal chapter is usually off the desk,” mentioned Laura Coordes, an affiliate professor of legislation at Arizona State College.
However choices do exist, in line with consultants who spoke with Marijuana Enterprise Journal:
Check out the U.S. Trustee Program’s marijuana enforcement actions close to you.