Understanding Liquidation Preference and Its Significance for Distressed Cannabis Companies

3min Snip

00:00

Play full episode

Summary

Transcript

Episode notes

Learn about the significance of liquidation preference for cannabis businesses and investors, and gain insights into the differences between debt and equity, secured and unsecured debt, and their impact on creditor priority.

Cannabis companies can find themselves in financial distress but are generally locked out of the federal bankruptcy courts. What are their options? Perkins Coie Associate Tommy Tobin sits down with Billy Organek, program fellow at Harvard Law School’s Bankruptcy Project, to discuss the importance of bankruptcy law and options companies can seek outside of the federal bankruptcy process.