Circuit Court Judge: Cannabis Businesses Can't File For Bankruptcy When They Fail
Marijuana is still illegal under federal law so when a marijuana business goes broke, it isn’t eligible to file for bankruptcy in the federal courts, Kent County Circuit Court Judge Christopher Yates told the Michigan House Judiciary Committee Tuesday.
“Whether we like it or not, we in the state of Michigan, in our court system are going to have to handle the fall out for every single marijuana facility that doesn’t make it financially. This bill allowing for the appointment of a receiver will allow for a much more orderly process for dealing with the marijuana businesses that do not succeed financially,” said Yates, who also was representing the Michigan Judges Association.
He was testifying in support of HB 5490 and HB 5491, sponsored by Rep. Brandt Iden (R-Oshtemo Twp.), which would allow a medical marijuana facility or a marijuana establishment to be put under the control of a court-appointed receiver.
The bills give the Marijuana Regulatory Agency the job of coming up with rules for the process.
This story was published by the Small Business Association of Michigan
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