The Wall Street Journal, the U.S. Department of Justice continues to argue in court against extending bankruptcy protections for marijuana companies, and there’s no solution on the horizon unless Congress acts to remedy the situation.
At issue is a longstanding Justice Department policy that bankruptcy can’t be used to protect federally illegal businesses, including state-approved marijuana companies, a DOJ spokesperson told the Journal.
Here’s a report by MJ Biz
The WSJ piece ( behind paywall)
The Justice Department is preventing struggling cannabis businesses and their workers from accessing bankruptcy to weather the coronavirus-related downturn, even in states that determine medical marijuana is an essential industry during the pandemic.
The department’s policy means the financial safety net that bankruptcy provides consumers who fall behind on their mortgages or car payments is likely out of reach for those who work in the marijuana industry or businesses supporting state-regulated dispensaries or growers.