Leah M. Eisenberg Quoted in Bloomberg Law, “Cannabis Bankruptcy Relief Broadens With Delaware Court Ruling

Leah M. Eisenberg, partner in the firm’s Bankruptcy, Restructuring & Creditors’ Rights practice, was recently quoted in a Bloomberg Law article titled, “Cannabis Bankruptcy Relief Broadens With Delaware Court Ruling.”  The article discusses a recent landmark ruling whereby the Bankruptcy Court for the District of Delaware granted Chapter 15 recognition to The Cannabist Company Holdings Inc., whose subsidiaries operate in the cannabis industry, while expressly reserving the rights of a secured lender that had argued recognition would violate U.S. public policy. Although the ruling was fact specific and issued without a formal written opinion, it nonetheless supports consideration of Chapter 15 as a viable tool for non-U.S. cannabis related companies seeking U.S. Bankruptcy Code stay protection and asset coordination—without automatically triggering an objection by the Office of the United States Trustee (UST). This is notable given the UST’s longstanding practice of seeking dismissal of domestic bankruptcy cases involving cannabis on the ground that continued cannabis activity violates federal law.

“This is notable given the US Trustee’s longstanding practice of seeking dismissal of domestic bankruptcy cases involving cannabis,” Eisenberg told Bloomberg Law.

To read the full article in Bloomberg Law, click here.

To read more about Leah Eisenberg and her work, click here.