CA Bankruptcy Court Throws Regulatory Concerns Aside and Sides With Cannabis Business' Chapter 11 Plan

While this case does not fully open the courthouse doors to cannabis-related businesses and seemingly grants the bankruptcy courts a great deal of discretion when ruling on similar cases in the future, cannabis-related businesses may now have a roadmap to pursue reorganization.

8 minute read December 01, 2023 at 12:09 AM
By
Lawrence J. Kotler and Ryan Spengler
CA Bankruptcy Court Throws Regulatory Concerns Aside and Sides With Cannabis Business' Chapter 11 Plan

In contrast with a majority of bankruptcy courts that routinely dismiss cannabis-related cases for perceived violations of the Controlled Substances Act (CSA), the U.S. Bankruptcy Court for the Central District of California in the recent opinion In re Hacienda, No. 2:22-BK-15163-NB, (Bankr.

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