US Admin Says Cannabis Co.’s Ch. 11 Releases Too Wide




By Leslie A. Pappas (February 7, 2022, 5:05 PM EST) – The Office of the U.S. Trustee has accused cannabis investment firm Kettner Investments LLC of attempting to use its Delaware Chapter 11 reorganization to obtain sweeping liability waivers for many third parties who violate the Bankruptcy Code, including releasing the company from future claims after bankruptcy.

In a multi-point objection filed on Friday, the U.S. trustee urged the bankruptcy court to reject the California company’s proposed Chapter 11 plan because of broad releases for third parties not part of the case.

“There is simply no need for these third-party releases, and no consideration is paid by the released parties in…

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