Cannabis Receiverships: The Alternative for State Legal Cannabis businesses Seeking Financial Rehabilitation Locked Out of Bankruptcy Court by the Controlled Substances Act
This article explores how cannabis businesses suffer by being unable to utilize federal bankruptcy and explore state law receiverships as an alternative remedy to help cannabis businesses weather financial storms.
Part I explores the limitations and differences between a receivership and a bankruptcy. Part II discusses how state legal cannabis companies cannot seek financial rehabilitation in bankruptcy court due to cannabis being listed as a schedule I drug federally. Part III explores how receivership be used to help cannabis companies that cannot seek bankruptcy protection to financially rehabilitate themselves. Part IV details how a receiver can help a cannabis company that cannot access bankruptcy court financially rehabilitate itself and how a receiver is appointed. Lastly, Part V concludes by discussing how cannabis companies often fail unnecessarily due to lack of bankruptcy protection, which harms economies and prevents the collection of tax revenue.
Ryan C. Griffith, Cannabis Receiverships: The Alternative for State Legal Cannabis businesses Seeking Financial Rehabilitation Locked Out of Bankruptcy Court by the Controlled Substances Act, 45 SEATTLE U. L. REV. 1107 (2023).
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