On May 9, a Delaware bankruptcy court handed The Cannabist Company Holdings Inc. something no cannabis multistate operator had ever managed to obtain: federal bankruptcy protection. U.S. Bankruptcy Judge Brendan L. Shannon signed the recognition order, confirming that Cannabist’s ongoing insolvency proceedings in Canada qualify as a foreign main proceeding under Chapter 15 of the U.S. Bankruptcy Code, effectively pausing domestic collection actions while the company works through its asset sales.
Cannabist had filed for protection under Canada’s Companies’ Creditors Arrangement Act on March 24, 2026. The company’s Vancouver-registered holding companies, Canadian-law debt, and active CCAA proceeding gave it the standing to pursue U.S. recognition through Chapter 15, rather than attempt a domestic Chapter 11 or Chapter 7 filing, routes that have historically been closed to cannabis operators because marijuana remains a Schedule I controlled substance under federal law. Shannon found that without the requested relief, individual creditors could move to frustrate the Canadian restructuring process, which would run counter to the purpose of Chapter 15.
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