Leah M. Eisenberg Authors Article for Mg Magazine, “The Cannabis Industry and Bankruptcy Relief”
Leah M. Eisenberg, partner in the firm’s Bankruptcy, Restructuring & Creditors’ Rights practice, authored an article in Mg Magazine titled, “The Cannabis Industry and Bankruptcy Relief.” The article explains that due to marijuana's classification as a Schedule I substance under the federal Controlled Substances Act (CSA), cannabis businesses are generally ineligible for federal bankruptcy protection, regardless of their legal status under state laws. Federal bankruptcy courts, bound by federal law, often dismiss cases involving cannabis-related companies, as the U.S. Trustee's Office views participation in the bankruptcy system by entities engaged in federally illegal activities as impermissible.
To read Eisenberg’s full article in Mg Magazine, click here.