Cannabis in Canada and the United States: Disparate Treatment Under the Two Insolvency Regimes

This presentation,  delivered by Craig Munro of FTI Consulting, Mark Salzberg of Squire Patton Boggs, and John Sandrelli of Dentons, will begin by providing an overview of the cannabis industry in both Canada and the United States, and its current market stresses. It will then discuss how cannabis companies are able to restructure in Canada under insolvency legislation including the Companies' Creditors Arrangement Act. Next, the program will turn to the U.S. and discuss how cannabis companies are being denied the ability to restructure under the U.S. Bankruptcy Code. Exceptions to the general policy barring these companies from bankruptcy courts will also be covered. Finally, the course will explore the possibility of cross-border bankruptcies under Chapter 15 of the U.S. Bankruptcy Code for Canadian cannabis companies and discuss alternatives to bankruptcy for financially distressed cannabis companies.

1. Gain an overview of the current market conditions in Canada and the U.S. for cannabis companies

2. Examine how cannabis companies can restructure under Canadian law

3. Explore whether cannabis companies can restructure under U.S. bankruptcy law and alternatives to bankruptcy

4. Discuss the potential for Chapter 15 cross-border cannabis cases