Advising Financially Distressed Companies in the Cannabis Industry
Program Number
Program Date
CLE Credits
Although many states have legalized the medical or recreational use of marijuana, marijuana remains flatly illegal under federal law. Because of this, most bankruptcy courts refuse to grant bankruptcy relief to financially-troubled businesses that operate in or around the cannabis industry. As a result, businesses that are involved (however tangentially) in the cultivation and distribution of cannabis products must use other methods to restructure their balance sheets or to sell their assets, including assignments for the benefit of creditors, receiverships, creditor compositions and out-of-court sales. This impacts the substantive and procedural rights of not only the cannabis-related business itself, but also those of its investors and lenders. Learning Objectives: Understand the status of federal law with respect to cannabis, and current case law regarding the availability of the federal bankruptcy courts to financially troubled businesses involved in the cannabis industry. Explore debt restructuring and asset liquidation alternatives to bankruptcy, as well as the advantages and disadvantages of each alternative. Get practical guidance on counseling clients in cannabis-related businesses, as well as investors and lenders to those businesses.
Available in States
- California
- Georgia
- New Jersey
- New York
- Texas Self Study
Program Categories
- Banking & Finance Law
- Bankruptcy Law & Creditor Rights
- Cannabis Law
- Constitutional Law
- Federal Courts
- Financial Regulatory
- Pharmaceutical Law
PROGRAM CREDITS
- Areas of Professional Practice : 1 Credit
