Starting a cannabis business is often discussed, but maintaining a business, particularly during a downturn in the industry, is a completely different ballgame. Pockets of the cannabis industry are experiencing financial distress, and this is generating fear and concern for marijuana licensees as well as their financiers and creditors.
In this first installment of our three-part series exploring issues involving cannabis and bankruptcy, we’ll give an overview of the various forms of Bankruptcy (Chapters 7, 11, and 13) and insolvency options available and explore one recent case where a cannabis employee was denied bankruptcy protection.
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