United States: Cannabis & Hemp

Cannabis companies had long been shut out of the U.S. bankruptcy system because federal courts refused to administer assets derived from or connected to federally prohibited activity.

A federal bankruptcy court in Delaware has made a groundbreaking decision by recognizing a foreign insolvency proceeding for a cannabis company, marking the first time a U.S. federal court has acknowledged such proceedings despite marijuana's continued federal prohibition. This development opens new restructuring pathways for distressed cannabis operators who were previously limited to state-law remedies like receiverships and out-of-court restructuring.

Virginia's retail cannabis market faces continued delays as Governor Spanberger Meanwhile, Idaho voters may decide whether to restrict their own ability to legalize marijuana through ballot initiatives...