Tag Archives: good faith

Up in Smoke: More Cannabis Companies Get Shut Out of Bankruptcy

Marijuana Cannabis LeafsIn another loss for the cannabis industry, a district court recently affirmed the dismissal of chapter 11 petitions filed by companies that sold product used by both state-licensed marijuana growers and non-marijuana growers.  The district court’s decision in Way to Grow, Inc. demonstrates that the door that was opened by the Ninth Circuit in Garvin … Continue Reading

Interests and Good Faith Under Section 363 – A New Decision Explores the Limits of Both

A recent decision from the Bankruptcy Court for the District of Montana highlights the limits of the term “interests” under section 363(f) of the Bankruptcy Code, and the limits of “good faith” under section 363(m). In In re Mountain Divide, LLC, Case No. 16-61015-11 (Bankr. D. Mont. 2016), the debtor filed a Chapter 11 petition, and shortly … Continue Reading

How The Casino Kept Its Chips From A Bankruptcy Claw-Back

Insiders who loot their corporate entities often dispose of the cash proceeds in transactions with third parties. A recent Seventh Circuit opinion, In re Equipment Acquisition Resources, Inc., 14-2174 (7th Cir. October 13, 2015) (the “EAR Opinion”) addresses a common risk faced by a third party who receives cash from the defrauding insider. Generally, a … Continue Reading