In contrast with a majority of bankruptcy courts that routinely dismiss cannabis-related cases for perceived violations of the Controlled Substance Act (CSA), the Bankruptcy Court in the recent opinion In re Hacienda, No. 2:22-BK-15163-NB, 2023 WL 6143217 (Bankr. C.D. Cal. July 11, 2023) refused to conform to the same historical standard. Instead, the Bankruptcy Court struck down the U.S. trustee’s motion to dismiss not once but twice in favor of confirming a marijuana business’ Chapter 11 plan of reorganization.
Background
In this case, the debtor, Hacienda Co., LLC (the debtor), was in the business of wholesale manufacturing, packaging, and distribution of cannabis products to dispensaries within the state of California under the name “Lowell Herb Co.” aka “Lowell Farms.”
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