“With rescheduling, it is possible that medical cannabis operations might have similar success filing a chapter 11 in the near future.”
By Michael Brandess and Steve Levine, Husch Blackwell LLP
The cannabis business can be challenging. Margins are often pretty thin. Customers are fickle. And taxes are pretty high. While other industries have similar problems, until the recent rescheduling of medical marijuana, the industry had been completely frozen out of U.S. bankruptcy courts because it was federally illegal, and bankruptcy law is federal law.
To some extent, however, that recently changed.
On March 24, The Cannabist Company Holdings (Canada) Inc. and its U.S. subsidiaries commenced proceedings under the…