Kathleen (Katie) Allare Counsel

Chapter 11 bankruptcy has historically been inaccessible to cannabis and cannabis adjacent businesses. But a Los Angeles bankruptcy court recently denied a motion to dismiss the case of a debtor in the business of wholesale manufacturing and packaging of cannabis products. The decision gives hope that bankruptcy could be a viable path for companies that seek to eliminate risk of future violations of the Controlled Substances Act.

The latest COVID-19 relief legislation provided some additional aid and clarity for a select group of debtors and left many other questions unanswered.