Cannabis and a Bankruptcy Decision II

Continuing a subject begun last week.

Let us assume that I would like to see state-legal cannabis enterprises thrive, on the whole. Of course, as a capitalist I recognize that some will fail and they should be allowed to fail. I hope not to see the day when any head shop is considered Too Big to Fail like the banks of 2008.

Because I wish well for the industry as a whole, while allowing for failures of independent firms, I want to see the cannabis industry have access to the bankruptcy courts and especially to chapter 11, which allows for a company to enter the court's protection from creditors, under the umbrella of that protection re-organize its financial stricture, then re-emerge into normal operations, out from under the umbrella.

Something like this is best for everyone in the case of a business failure: best for the customers and employees, best for the investors, best even for the principals, although they often end up having a lessened connection to the reorganized firm.

So, yes, I hope that the courts find a way to allow state-legal cannabis companies to enter bankruptcy court protection. This allows chapter 11 and it leaves open the possibility of chapter 7. Both are parts of the balance of the whole.

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