Cannabis Companies Still Cannot Seek Chapter 11 Bankruptcy Protection
DENVER–A bankruptcy court in Colorado last week threw out United Cannabis Corp.’s Chapter 11 case, finding “good cause” to grant a Justice Department motion to dismiss based on the company’s ties to cannabis. Judge Joseph G. Rosania Jr. of the U.S. Bankruptcy Court for the District of Colorado on Wednesday sided with the U.S. Trustee in a one-page order. The DOJ’s bankruptcy watchdog had pointed out that the drug
United Cannabis Corporation and subsidiaries, UC Colorado Corporation, filed for Chapter 11 in Colorado back in April 2020.
Federal bankruptcy protection was denied because, as the United Cannabis court has already noted in an order to show cause issued this week, “activities associated with the marijuana industry are illegal under federal law and cannot be condoned by the bankruptcy courts.”
Thus, the filing has garnered significant attention throughout the cannabis industry, and everyone will be disappointed to find out that the federal law still stands until the new Congress, hopefully, passes full legalization of cannabis.
New York Bill Advances to Cover Medical Cannabis Under State-Funded Insurance Programs
NEW YORK-- New York state lawmakers are pushing forward with a measure that could bring significant relief to patients seeking medical cannabis treatment. The proposed bill, which advanced easily out of a state Assembly committee ...
Canopy Growth Corp. Ordered to Pay C$15 Million in Arbitration Ruling
LOS ANGELES-- Canopy Growth Corp., a major player in the cannabis industry based in Canada, has been hit with a C$15 million penalty by an arbitration tribunal for breach of contract, according to a regulatory ...
Curaleaf to Close NJ Cannabis Cultivation Facility, Resulting in Layoffs
LOS ANGELES-- Curaleaf, a cannabis giant based in Massachusetts, has announced that it will close its cannabis cultivation facility in Bellmawr, New Jersey. The closure will reportedly result in the loss of up to 40 ...