Leah M. Eisenberg Authors Article for Mg Magazine, “Chapter 15: A New Path for Cross‑Border Cannabis Restructuring”
Leah M. Eisenberg, partner in the firm’s Bankruptcy, Restructuring & Creditors’ Rights practice, authored an article in Mg Magazine titled, “Chapter 15: A New Path for Cross‑Border Cannabis Restructuring.” The article discusses how a recent Delaware bankruptcy ruling may make it easier for Canadian cannabis companies to protect their U.S. assets while restructuring financially. The decision highlights a key difference between foreign and domestic cannabis businesses, as U.S.-based cannabis companies still face major obstacles to obtaining bankruptcy protection under federal law.
“The recognition order in The Cannabist Co.’s Chapter 15 case represents a meaningful development in the cannabis industry’s ability to access U.S. bankruptcy-adjacent protections. While domestic cannabis companies continue to face significant barriers due to the CSA, this case demonstrates that Canadian-incorporated companies with their COMI in Canada may successfully obtain Chapter 15 recognition and its attendant benefits. As a result, such companies may enjoy a comparative advantage in restructuring distressed operations across borders,” writes Eisenberg.
To read Eisenberg’s full article in Mg Magazine, click here.
