Can Cannabis Companies File Bankruptcy? The New Chapter 15 Roadmap

Mark Salzberg and Katherine Catanese of Squire Patton Boggs highlight The Cannabist Company’s Chapter 15 recognition order as a narrow but significant roadmap for cannabis restructurings involving Canadian or other foreign parent companies, suggesting that US bankruptcy courts may grant ancillary relief where the main proceeding is in a jurisdiction where cannabis is legal, even though direct US bankruptcy access remains constrained by federal cannabis illegality.

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