Part 2: Fourth Annual State of the Cannabis Industry Conference – Roadmap to Restructuring and Workouts in the Cannabis Industry
Click here to watch the full panel.
Cannabis businesses face unique challenges when confronted with economic difficulties and financial challenges in an industry suffering from a lack of institutionalized capital. While cannabis remains federally illegal, bankruptcy court protection is denied to plant-touching and, in some circumstances, ancillary companies. Scott Moskol, co-chair of Burns & Levinson’s Cannabis Business Advisory Group, moderated the first panel at the firm’s Fourth Annual State of the Cannabis Industry Conference, exploring both the judicial and non-judicial options for operators, secured creditors, investors, and other stakeholders in the context of distressed transactions as well as other financial issues affecting the industry.
The panel opened with a brief discussion on the apparent financial strength of the cannabis industry, even despite the economic repercussions of the pandemic. Vicente Sederberg’s Charles Alovisetti noted that at the start of the COVID-19 crises there was widespread concern over the financial health of the industry but, the anticipated volume of distress did not materialize. Nonetheless, Mr. Alovisetti cautioned that some cannabis companies will experience distress and, therefore, it is vital that we consider the important questions that will arise in those circumstances – namely, what will happen to a distressed … Keep reading