Without Bankruptcy, States Step In To Help Insolvent Pot Cos.

By Diana Novak Jones (March 13, 2020, 8:07 PM EDT) -- As marijuana businesses have found they can't rely on federal bankruptcy courts to help them through insolvency, several states have stepped in with laws to give struggling companies some relief through receiverships.

The laws allow receivers to take control of struggling marijuana enterprises, laying out a way for someone outside of the business to step into the owner's shoes without worrying about whether they are running afoul of the state's laws on how marijuana business operators are licensed.

In general, the nation's bankruptcy courts have not been welcoming to cannabis businesses, with judges finding different ways to say that bankruptcy plans...

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