Growing Pains: Financial Distress in the Cannabis Business

The marijuana business is not what it used to be. Overcapacity and unique regulatory challenges have led to severe financial distress in the cannabis industry. In fact, the Boston Globe reports that the retail marijuana prices have dropped by more than half over the past two years and according to the Boston Business Journal, since 2018 sixteen cannabis licenses have been surrendered, revoked or not been renewed. Bankruptcy, however, is not an option for businesses operating in or around the cannabis industry. Most bankruptcy courts refuse to grant bankruptcy relief to cannabis businesses because the federal government continues to treat marijuana as an illegal Schedule 1 controlled substance. As a result, owners and creditors of cannabis businesses are required to seek relief in state court. This program will review the state of the current law on the eligibility of cannabis businesses for bankruptcy relief and explore how receivership and other state law remedies can be used to reorganize and liquidate cannabis businesses.

This meeting is sponsored by the Massachusetts Bar Association's Cannabis & Hemp Law Practice Group

*This program will take place via Zoom only. Please RSVP below to recieve Zoom meeting information.

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