September 10, 2025
Foley Hoag Partners and Co-Chairs of the firm’s Bankruptcy & Restructuring Practice, Ken Leonetti and Alison Bauer, were quoted in a Bloomberg Law article discussing how Chapter 15 could offer strategic relief for cannabis businesses barred from traditional bankruptcy routes due to federal restrictions. Bauer noted that Chapter 15 “could be cost-effective and create safeguards to protect creditors if a U.S. court recognizes the foreign restructuring,” while Leonetti emphasized that “the less that there is plant-touching, the less is at stake,” suggesting that winding down U.S. operations could reduce legal risk. He added that “someone may try it out of desperation,” pointing to the growing pressure on cannabis companies to find viable restructuring paths. Foley Hoag regularly counsels clients across the cannabis industry on these and other restructuring strategies, drawing on its deep experience in cross-border insolvency and Chapter 15 proceedings.
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