A bankruptcy court case has been thrown out of court in Colorado, not helping the complicated and rocky relationship between medical marijuana and banking. Well-run businesses need banking services, but many banks have been hesitant to offer services to the operators of medical marijuana businesses, claiming marijuana’s federal legal status would put them in the position of racketeering, money laundering, or some other drug crime activities.
A Denver medical marijuana farm, CGP Enterprises LLC, has filed chapter 11. They had put their complicated financial problems along with their assets, about $130,000 of unharvested marijuana plants, at the mercy of the Bankruptcy Courts in Denver. Any company that is seeking Chapter 11 protection from its creditors is required to submit a reorganization plan to a federal bankruptcy judge. Continue reading »