Cannabis Meets Chapter 15: How The Cannabist Company Achieved Unprecedented Us Bankruptcy Protection — And What It Means For Creditors

For years, cannabis companies have been unable to access U.S. bankruptcy courts due to the federal classification of marijuana. Federal courts have consistently dismissed Chapter 11 cases filed by cannabis operators (and even their tangentially related counterparts) on the ground that marijuana’s status as a Schedule I controlled substance under the Controlled Substances Act (CSA) renders bankruptcy administration of cannabis-related assets incompatible with federal law.... By: Herbert Smith Freehills Kramer