A bankruptcy court’s recent denial of a debtor’s petition for bankruptcy relief on narrow grounds casts a long shadow on the viability of bankruptcy relief for those employed in the cannabis industry.
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Congress passed new, temporary bankruptcy relief measures late
last year that impact certain commercial landlords and tenants.
Among other things, the new legislation, which was signed into law
on Dec. 27, 2020: 1) extends commercial rent forbearance for
certain small business tenants experiencing material financial
hardship related to the COVID-19 pandemic, 2) lengthens the time
period for commercial tenants to assume or reject a commercial
lease, and 3) establishes protections for certain commercial
deferred rental payment agreements.
Extended Commercial Rent Forbearance
Description of Change: In general, a
commercial tenant in bankruptcy must pay its rental obligations as