Dykema Gossett PLLC

Cannabis Law Blog

Posts by Sheryl L. Toby

Cannabis Law Blog

News and analysis focusing on the full spectrum of cannabis-related issues facing businesses, investors, financial institutions and all levels of government throughout the United States

Contributors

Sheryl L. Toby
Member
stoby@dykema.com
248-203-0522
View Bio

Showing 1 post by Sheryl L. Toby.

Prohibiting Recourse to Receivership or Bankruptcy for Cannabis Industry Can Perversely Assist Bad Actor’s Continuation of Bad Acts—A Real Life Analogy

Currently there are no clear laws specifically addressing the means for addressing insolvency issues for debtors and creditors involved in the Cannabis industry. Like the industry itself, the laws are evolving. Using a Cannabis grower business as an example, at this time the Federal Court system is not available to address such entities insolvency issues. Even if state courts are theoretically willing to consider a receivership proceeding, without statutory protections or clarity addressing the licensing issues, it would be a challenge to find a person with sufficient expertise in addressing financially troubled companies willing to undertake the risks associated with acting as the receiver and operating the highly regulated company.   Read More ›