It is no secret that the Cannabis industry has bloomed into a multi-billion dollar industry in the United States since many states have legalized marijuana for medical and recreational use. Reports indicate that sales are on pace to hit $12 billion this year. As with any industry, growth does not universally mean success. In a saturated market, with difficult and expensive regulatory hurdles to overcome, failures in the industry have been seen, and further distress can and should be anticipated.
- Will federal bankruptcy be available to distressed companies involved in the cannabis industry?
- What problems companies that do business with cannabis companies have encountered when they themselves seek bankruptcy protection?
- What alternatives are available if the bankruptcy door is closed to distressed companies?
“Insolvency Issues in the Booming Cannabis Industry” is available here.