Akerman Cannabis Practice Chair Jonathan S. Robbins was quoted in Bloomberg Law on the implications of a Delaware bankruptcy court's May 9 decision recognizing The Cannabist Company's Canadian insolvency case, in the article "Cannabis Bankruptcy Relief Broadens With Delaware Court Ruling."
The ruling may establish a template for cannabis operators with international structures seeking U.S. bankruptcy court assistance. The Cannabist Company's Chapter 15 filing marked a novel approach for the industry, which has historically been barred from federal bankruptcy protection due to marijuana's controlled substance status.
Jonathan highlighted the strategic timing of the court's decision in relation to federal policy shifts. "When that happened, the federal government had to acknowledge that there are accepted medical uses for marijuana," he told Bloomberg Law. Looking ahead, Jonathan anticipated increased activity from similarly positioned companies. "We're going to see some people testing the waters," he said.