“Can a debtor in the marijuana business obtain relief in the federal bankruptcy court? No.”

August 27, 2015

No Relief: Ruling Highlights Lack of Options for Marijuana Companies Seeking Bankruptcy Protection

 

By John Schroyer

“Can a debtor in the marijuana business obtain relief in the federal bankruptcy court? No.”

That’s a line in the first paragraph of a recent court ruling against Frank Arenas, a Colorado marijuana grower and wholesaler who tried to win federal bankruptcy protection. A U.S. Bankruptcy Court judge initially ruled that Arenas can’t claim such protections because marijuana is still illegal, and an appellate panel affirmed that decision last Friday.

It’s the latest in a string of court decisions on cannabis-related bankruptcy cases dating back to at least 2012, when a judge involved in the Arenas decision issued a similar ruling involving another marijuana company. There have been at least four other such decisions as well in Colorado and California – all with the same outcome as Arenas’ case.

So what can distressed marijuana companies do if they’re on the verge of bankruptcy? The answer may depend on which state a company is in, and how it’s structured.

Arenas, for example, made a big mistake in not keeping his personal assets separate from his business, said Arizona attorney Gary Michael Smith. That’s evident, Smith said, because Arenas tried initially to file for Chapter 7 bankruptcy protection and then convert it into Chapter 13, which is only doable if it’s a personal – not a business – bankruptcy.

“The mistakes he made makes it pretty clear that he conducted business in his personal name, and/or he was personally guaranteeing the debt that his business was assuming, which is horrible,” Smith said. “One should not do that, particularly with those amounts of money.”

Sean McAllister, a Denver attorney who also works closely with the cannabis industry, said one of the best and most obvious ways to avoid such pitfalls is to be careful when setting up a marijuana business at the outset.

“The most important thing for any cannabis company is to be really thinking about this as you make agreements, as you borrow money, as you enter into partnerships, because there are things you can do to limit your liability,” McAllister said. “The lack of bankruptcy protection is a problem, but it’s more of a problem if people have exposed their personal assets.”

As Marijuana Business Daily wrote about last year, there are a number of ways that cannabis companies can prepare for financial hardships and possibly avoid even having to consider bankruptcy.

There may be some additional steps companies can take, depending on the state where a given business is located, Smith said.

For example, a possibly unique precedent was set in Arizona several years ago when a court sided with a cannabis company that owed creditors $500,000, Smith said. The judge tossed a lawsuit brought by two creditors, saying the loans were illegal in the first place because they were given to a business handling cannabis, which is illegal under federal law.

“If that guy walked into my office and had this problem, what I’d probably suggest is he go into a federal lawsuit to have the debt related to the marijuana operation deemed void for illegality,” said Smith, referring to the owner of the Arizona business seeking relief from creditors. That would mean “nobody could enforce those debts against” the company, he added.

That probably wouldn’t work everywhere, said Colorado attorney Rachel Gillette. She said the state put in place protections for such deals, so under Colorado statute such an argument wouldn’t apply.

Still, there are other potential state laws that businesses might be able to take advantage of, said New York attorney Hanan Kolko. Some states have their own versions of bankruptcy protections, he said, that wouldn’t have the same conflicts as federal bankruptcy laws.

“To an extent that a state has that, a cannabis business could use that,” Kolko said.

But that underscores the need for business owners to do their homework and talk to legal counsel, both before companies are founded and if they ever run into financial hardship. And it highlights a need for further reforms.

“It’s just another example which illustrates why we need substantive reform at the federal level,” Gillette said. “It doesn’t work to operate in this sort of quasi-legal arena. The federal law needs to change.”

John Schroyer can be reached at [email protected]

CONTINUE READING…

“Can a debtor in the marijuana business obtain relief in the federal bankruptcy court? No.”

August 27, 2015

No Relief: Ruling Highlights Lack of Options for Marijuana Companies Seeking Bankruptcy Protection

 

By John Schroyer

“Can a debtor in the marijuana business obtain relief in the federal bankruptcy court? No.”

That’s a line in the first paragraph of a recent court ruling against Frank Arenas, a Colorado marijuana grower and wholesaler who tried to win federal bankruptcy protection. A U.S. Bankruptcy Court judge initially ruled that Arenas can’t claim such protections because marijuana is still illegal, and an appellate panel affirmed that decision last Friday.

It’s the latest in a string of court decisions on cannabis-related bankruptcy cases dating back to at least 2012, when a judge involved in the Arenas decision issued a similar ruling involving another marijuana company. There have been at least four other such decisions as well in Colorado and California – all with the same outcome as Arenas’ case.

So what can distressed marijuana companies do if they’re on the verge of bankruptcy? The answer may depend on which state a company is in, and how it’s structured.

Arenas, for example, made a big mistake in not keeping his personal assets separate from his business, said Arizona attorney Gary Michael Smith. That’s evident, Smith said, because Arenas tried initially to file for Chapter 7 bankruptcy protection and then convert it into Chapter 13, which is only doable if it’s a personal – not a business – bankruptcy.

“The mistakes he made makes it pretty clear that he conducted business in his personal name, and/or he was personally guaranteeing the debt that his business was assuming, which is horrible,” Smith said. “One should not do that, particularly with those amounts of money.”

Sean McAllister, a Denver attorney who also works closely with the cannabis industry, said one of the best and most obvious ways to avoid such pitfalls is to be careful when setting up a marijuana business at the outset.

“The most important thing for any cannabis company is to be really thinking about this as you make agreements, as you borrow money, as you enter into partnerships, because there are things you can do to limit your liability,” McAllister said. “The lack of bankruptcy protection is a problem, but it’s more of a problem if people have exposed their personal assets.”

As Marijuana Business Daily wrote about last year, there are a number of ways that cannabis companies can prepare for financial hardships and possibly avoid even having to consider bankruptcy.

There may be some additional steps companies can take, depending on the state where a given business is located, Smith said.

For example, a possibly unique precedent was set in Arizona several years ago when a court sided with a cannabis company that owed creditors $500,000, Smith said. The judge tossed a lawsuit brought by two creditors, saying the loans were illegal in the first place because they were given to a business handling cannabis, which is illegal under federal law.

“If that guy walked into my office and had this problem, what I’d probably suggest is he go into a federal lawsuit to have the debt related to the marijuana operation deemed void for illegality,” said Smith, referring to the owner of the Arizona business seeking relief from creditors. That would mean “nobody could enforce those debts against” the company, he added.

That probably wouldn’t work everywhere, said Colorado attorney Rachel Gillette. She said the state put in place protections for such deals, so under Colorado statute such an argument wouldn’t apply.

Still, there are other potential state laws that businesses might be able to take advantage of, said New York attorney Hanan Kolko. Some states have their own versions of bankruptcy protections, he said, that wouldn’t have the same conflicts as federal bankruptcy laws.

“To an extent that a state has that, a cannabis business could use that,” Kolko said.

But that underscores the need for business owners to do their homework and talk to legal counsel, both before companies are founded and if they ever run into financial hardship. And it highlights a need for further reforms.

“It’s just another example which illustrates why we need substantive reform at the federal level,” Gillette said. “It doesn’t work to operate in this sort of quasi-legal arena. The federal law needs to change.”

John Schroyer can be reached at [email protected]

CONTINUE READING…

Phytoremediation of Urban Brownfields: a Case for Industrial Hemp

Phytoremediation of Urban…

Phytoremediation of Urban Brownfields: a Case for Industrial Hemp

Brownfield land , Phytoremediation , Environmental remediation

Phytoremediation of Urban Brownfields:
A Case for Industrial Hemp
By: Jeff Lemon Thursday, June 21, 2012
Brownfields
Brownfield Phytoremediation
Page 2 Page 4
A Case for Industrial Hemp?
Page 5
Executive Summary
There are a number of reasons why we should care about brownfields. From encouraging urban sprawl through the ‘development’ of greenfields to their environmental impacts on soil, air and ground water, these properties are a drain upon the urban environment. Redevelopment of brownfields are complicated by the potential contamination of hazardous waste, heavy metals and pollution that has been left behind in the soil. Although this land can be used once the soil has been cleaned, landowners are not financially incentivized to do so and inevitably ‘sit’ on these properties due to the current tax policies. The last decade has spawned a number of methods of remediating these potentially contaminated properties. One approach that has been gaining a lot of press of late, is phytoremediation. This approach to brownfield remediation works in favour for all the stakeholders involved. For the landowner, bioremediation not only offers a cheap solution to the decontamination of their land, but it also allows them to continue to utilize current tax incentives by creating a ‘green space’. For the urban farmer, phytoremediation gives the urban farmer access to valuable land, while allowing for the potential cultivation of certain cash crops. With the number of brownfields in Metro Vancouver growing, it is imperative to understand how increasing awareness and responsible redevelopment can transform environmentally damaged properties into productive lands, which can result in environmental, economic and social community benefits.
Purpose of Research
The purpose of this report is to examine the benefits of using industrial hemp as a potential cash crop in the practices of phytoremediation for the reclamation of Vancouver’s urban brownfields. Through…

Please upgrade to read full document.

Topics in this document

Brownfield land , Phytoremediation , Environmental remediation , Bioremediation , Urban agriculture , Hemp , Groundwater , Pollution , Urban sprawl , Affordable housing , Ministry of Environment (South Korea) , Wetland , Soil , Water resources , Heavy metal (chemistry)

Whiskey named after Tennessee moonshiner debuts new bottle

Whiskey named after Tennessee moonshiner debuts new bottle.

NASHVILLE, Tenn. (AP) — A white whiskey named after a legendary Tennessee moonshiner is introducing a new bottle after a legal dispute over similarities to Jack Daniel’s shape and design.
The Popcorn Sutton brand, which began production after the death of its namesake, ran into the legal troubles in 2013 after starting to ship the product in square-shaped bottles instead of in Mason jars.
Brown-Forman Corp. of Louisville, Kentucky, filed a federal lawsuit in 2013 claiming that the Popcorn Sutton bottling and labelling were “confusingly similar” and gave the impression that the moonshine was part of the Jack Daniel’s line.
The lawsuit was settled last year, and Popcorn Sutton had gone back to being sold in Mason jars. The new bottles are rounded and clear, and labels no longer call the product “Tennessee white whiskey.”

Regarding kendra sams – “lodged” at laurel county corrections” in kentucky…

 

Ms. Kendra Sams,  29  years old, was being lodged at the Laurel County Corrections.

According to Facebook posts she suffered a seizure on July 12th which caused her to fall from the top bunk in her cell and land on the floor.  She was not given medical attention at that time.

At some point she was transferred to Casey County Corrections where her illness became acute.  Her Mother was apparently contacted and she was then transported to the Hospital.

Facebook Timeline Posts:

Roger Hoskins

August 18 at 12:18pm · Garrard, KY ·

 

I’m waking up to some heart breaking news out of the family and asking for all who can please pray

Roger Hoskins

August 18 at 3:10pm · Edited ·

 

Please be praying for Kendra Sams she’s going into surgery right now … This young lady didn’t deserve any of this and I’m confident that the story will be told soon…. Please now all the family ask is to be praying

Roger Hoskins added 2 new photos.

August 18 at 7:15pm · Garrard, KY ·

 

These picture are of Kendra Sams and this is not even the Justice this young lady has suffered .. She’s has much more going I inside her… And is in critical condition at UK hospital … She’s in bad shape according to family who is with her when I am updated on her condition I will pass it along .. The family ask for prayers and this should have never ever happen to anyone else

Roger Hoskins

August 18 at 7:49pm · Garrard, KY ·

 

Update on Kendra they have 3 drain tubes in her and not sure one will work right but already pulled 2 ounces of infection out of her back but keeping her sedated until tomorrow to do more test … No one is allowed to see her till tomorrow so please keep praying

Roger Hoskins

Yesterday at 3:36am · Garrard, KY ·

 

They have started a feeding tube on Kendra and a temp of 102 … Doctors said that the next 72 hour will be very critical… So keep prayers coming and I have had a lot ask what happened… Right now the families focus is on Kendra … All they need is prayers but I promise this story will be told .. Thank for all the praying that’s going on and as always it’s in Gods hands ..

Roger Hoskins

Yesterday at 1:37pm · Garrard, KY ·

 

The story is coming out …. Please pray for Kendra the doctors are hoping she last throughout the day

Roger Hoskins added 4 new photos.

Yesterday at 3:19pm · Edited ·

 

This all started at Lcdc and she was sent to Casey county jail with the out come being her fighting for her life …. On July 12th she had a seizure a few weeks later she was sent to Casey county detention center will little or no medicinal help … Her mother was called to come get her and this is now her daughter returned home to her …. Don’t know if she will see tomorrow… Please pray….

Roger Hoskins

17 hrs · Edited ·

 

So thankful for Facebook this night as my post for Kendra has brought some light on all this but most of all I wanna thank the people who are brave and step up in behalf of Kendra … That is why Facebook is a valuable tool … As of 2 am there is no changes in her … I wanna thank each person who has shared this and by all means please continue to do so … This family deserves answers ! This could be your family member……………I will not disclose their name but here is a tid bit of information ……………..

My sister was in the cell with this girl in Casey co jail! She needed medical attention from day 1 this could be anyone’s family member please share this lets raise awareness

Michelle Jackson

11 hrs ·

 

Update on Kendra!!!!!!
She is still in critical condition they are having trouble keeping her BP up still and now they’re having to give her blood (1pint) so far… Please keep prayers coming.. TIA

— with Roger Hoskins and 8 others at UK ICU.

Michelle Jackson

3 hrs ·

 

Look what the Lord has done…. GLORY GLORY GLORY I PRAISE YOUR HOLY NAME THANK YOU SWEET JESUS!!!! SHE MOVED HER MOUTH AND TOLD HER MOMMY SHE LOVED HER!!!!!!! HALLELUJAH!!!!!!! KING JESUS I KNOW YOU HEAR ME WHEN I PRAY

— with Roger Hoskins and 9 others at UK ICU.

Michelle Jackson's photo.

Roger Hoskins

2 hrs ·

 

Please keep sharing my post maybe someone seen something and will step forward for Kendra Sams … This needs media attention to get to the bottom of this

Roger Hoskins

6 hrs · Edited ·

 

The family knows she is not perfect but to see this after being in 2 jails and her mother was called to come get her only to go into uk hospital is sad this is Kendra Sams if anyone was in her cell with her in laurel or Casey county please get ahold of this family … We are looking for answers to what happened .. This is truly sad … We have tried to contact all media but no help as yet so family has no choice but turn to social media .. Any information is appreciated …please share

***

It is currently 8/20/15 at 10:30pm and I am awaiting a call from Roger Hoskins who is willing to fill in the gaps in this atrocity which has happened under the watch of  “Kentucky Corrections “.

We can only hope and pray that Kendra Sams receives the justice that the State of Kentucky owes her because of this horrific ordeal.  She is not out of ICU yet.   She is currently still fighting for her life.

It never should have happened.

ANYONE who is incarcerated is entitled to receive healthcare under the Justice Department.

 

https://www.facebook.com/photo.php?fbid=401505606710487&set=pcb.401506100043771&type=1&theater

https://www.facebook.com/roger.hoskins2

human brain grown in a jar? apparently, yes…

Modern science is the stuff of a Frankenstein nightmare with the promise of growing a brain in a jar

Can you grow a brain in a jar? Scientists claim they’ve done just that. And the implication could not be more chilling

By John Nash For The Daily Mail

Published: 19:09 EST, 20 August 2015 | Updated: 20:04 EST, 20 August 2015

This is the stuff of Frankenstein nightmares. Imagine yourself as a functioning brain kept in a laboratory jar. White-coated scientists are torturing you by feeding an endless stream of terrifying images and sensations into your nervous system.

Even if you could cry out for help — no one could legally come to your rescue.

For years, philosophers have pondered the ethics of conducting such Nazi-style experiments, as a theoretical basis for moral arguments. But this issue is no longer theoretical. The age of a human brain in a jar is fast becoming reality.

This week, American biologists announced that they had crossed a critical threshold in the science of growing a human brain and keeping it alive in a laboratory.

Rene Anand, a professor of biological chemistry and pharmacology at Ohio State University, astonished military experts by announcing that his team has successfully grown a near-exact replica of a five-week-old foetus’s brain.

It is only about the size of a pencil rubber. But it contains 99 pc of the cells that would exist in the brain of a human foetus, making it the most fully formed brain ‘model’ ever engineered.

It even has its own spinal cord and the beginnings of an eye, Professor Anand told the 2015 Military Health System Research Symposium in Fort Lauderdale, Florida.

He has engineered the brain using stem-cell technology, which involved turning adult skin cells into stem cells which are capable of growing into any type of body tissue. It is a breakthrough that paves the way to cloning human brains.

The work is not finished. Prof Anand now plans to continue growing his lab brain until it resembles that of a 12-week-old fetus.

RELATED

Read more: http://www.dailymail.co.uk/sciencetech/article-3205485/Can-grow-brain-jar-Scientists-claim-ve-just-implication-not-chilling.html#ixzz3jRiUwp00
Follow us: @MailOnline on Twitter | DailyMail on Facebook

Read more: http://www.dailymail.co.uk/sciencetech/article-3205485/Can-grow-brain-jar-Scientists-claim-ve-just-implication-not-chilling.html#ixzz3jRiNhacE
Follow us: @MailOnline on Twitter | DailyMail on Facebook