Psychedelics and Bankruptcy with Lamar Hawkins, Esq. and Adam Nach, Esq.
In this episode of Psychedelica Lex, I interview Lamar Hawkins and Adam Nach, two absolute giants of bankruptcy law.
Our topic is the UNavailability of bankruptcy to investors and businesspeople in the non-FDA/DEA path of psychedelics. The psychedelic emergence in various state initiatives and state legislation is creating channels for businesses to operate in the twilight space between federal prohibition and varying levels of state permissiveness or tolerance. These intrepid investors and businesspeople risk inescapable debt, in addition to the myriad and daunting challenges nascent businesses face.
Lamar approaches the topic, levering his over 30 years of experience handling complex creditor and debtor work. Adam, with at least as much time in the trenches, has done extensive work on behalf of bankruptcy trustees, and lends insights from that perspective. Both Adam and Lamar have had to address cannabis issues in cases they have handled over the past decade. They share that although legally prevented from accepting cases involving the manufacture or trafficking in Schedule I substances (yes, that is what today’s cannabis dispensaries are), there are many bankruptcy judges and practitioners who would like to see federal law relax enough to permit these businesses and their assets and debts to be allowed access to bankruptcy. For now, these cannabis and other psychedelic businesses trying to enter bankruptcy is a lot like the Balrog trying to cross the bridge in Moria (Gandalf playing the role of the US Trustee), …you shall not pass!