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…

Stay one step ahead

In the legal profession, information is the key to success. You need to know what’s going on with customers, competitors, practice areas and industries. Law360 provides the intelligence you need to stay an expert and beat the competition.

  • Access to case data in articles (numbers, filings, courts, nature of lawsuits, etc.)
  • Access to attached documents such as briefs, motions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and more!


Previous Wisconsin lawyer owes disciplinary action despite bankruptcy
Next Top 10 retailers to watch for possible Chapter 11 filings in 2022