NO CLE - Cannabis and Bankruptcy: The Impermissible Contact High

The relaxation of marijuana statutes in many states may present financial opportunities for investors, with high rates of return and better-paying job opportunities for individuals. As with any emerging industry, consolidation and competition will create winners and losers. Whether investors, landlords, trade vendors and employees involved in the cannabis industry can restructure their debts in bankruptcy court, or even participate in a bankruptcy plan, depends on the extent of their connection to the cannabis industry. This panel will explore recent case law on the subject matter and alternative business-restructuring options when bankruptcy is not available, such as receiverships and assignments for the benefit of creditors. The panel will also address relevant consumer bankruptcy issues, including whether an individual employed in the cannabis industry may utilize chapter 13 to formulate and complete a plan.