Are bankruptcy doors now opening for cannabis companies? A decision last week from a California bankruptcy court indicates perhaps so, at least for cannabis companies that are no longer operating. Factual Background The Hacienda Company, LLC (the “Debtor”) was in the business of wholesale manufacturing and packaging cannabis products. After it ceased operations in February … Continue Reading
In 2020, bankruptcy court doors continued to be shut to cannabis companies. Perhaps most troubling is the continued bar for companies that are only tangentially involved in the state-legalized cannabis industry. Although outlier cases exist, and even though courts have hinted that bankruptcy may be appropriate for some cannabis-related individuals and companies in some situations, … Continue Reading
An employment tribunal has recently confirmed that employees who have been unfairly dismissed from an insolvent employer can bring an action against a connected successor company. The tribunal held that there was a ‘commonality of ownership’ between the original and successor companies and that it was correct as a matter of public policy that employees should be able … Continue Reading
The suitability of the collective consultation regime under the Trade Union and Labour Relation (Consolidation) Act 1992 (“TULRCA”) in an insolvency scenario has always been a hot topic amongst insolvency professionals. The recent case of West Coast Capital (USC) Limited (“USC”) provides a stark example of the hard-line approach the Secretary of State for Business … Continue Reading
An important decision was issued last week by the Bankruptcy Court for the District of Delaware in favor of Squire Patton Boggs’ client CCA Bahamas, Inc. (“CCA Bahamas”). The decision provides guidance on when U.S. bankruptcy courts should dismiss cases filed by foreign debtors. See In re Northshore Mainland Services, Inc., et al., Case No. … Continue Reading
The European Advocate General has today given his opinion in the “Woolworths case” (and two other cases) on the meaning of “establishment” for the purposes of determining when the duty to consult appropriate representatives is triggered under the European Collective Redundancies Directive (the Directive). The good news for insolvency practitioners (IPs) faced with potential consultation is that … Continue Reading
Put your lender’s hat on. Wouldn’t it be great if you could prevent your borrower from filing bankruptcy in the first place? Unfortunately for lenders, a recent decision demonstrates how hard it is to prevent bankruptcy filings. In In re Bay Club Partners-472, LLC, 2014 Bankr. LEXIS 2051 (Bankr. D. Or. May 6, 2014), the debtor was a … Continue Reading
