Marijuana/ Cannabis

The panel will briefly address the historical use of cannabis in America for medicinal purposes and the subsequent criminalization of cannabis, which was racially motivated. The panel will then discuss the challenges faced by corporate entities that seek to obtain bankruptcy protection when at least a portion of their income is derived from the sale or cultivation of cannabis, the lease of space to cannabis companies, or the sale or manufacture of products used in connection with a cannabis business.

With the legalization of marijuana in many states, there are now large numbers of individuals and businesses that derive their income from growing and selling marijuana and from other business activities related to marijuana. This session addresses the issues that emerge when individuals and businesses in this industry encounter financial problems. What are the sources of governing law (state/federal)? Is bankruptcy an option? How are marijuana-related income and assets treated? What are a bankruptcy trustee’s rights and responsibilities in dealing with a marijuana-related business?

John W. Lucas, Moderator
Pachulski Stang Ziehl & Jones LLP; San Francisco
Judicial Debate
Resolved: Structured dismissals of chapter 11 cases must always follow the Bankruptcy Code's priority structure.
Pro: Hon. August B. Landis
U.S. Bankruptcy Court (D. Nev.); Las Vegas
Con: Hon. Deborah L. Thorne
U.S. Bankruptcy Court (N.D. Ill.); Chicago
Business Debate
Resolved, a company deriving income indirectly from marijuana sales that are legal under state law should be eligible for relief under the Bankruptcy Code.
Pro: Daniel J. Garfield
McAllister Law Office P.C.; Denver