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United Cannabis Bankruptcy Fate Turns on Hemp, Marijuana Split

May 12, 2020, 8:08 PM

United Cannabis Corp.'s Chapter 11 bankruptcy case should continue because it doesn’t conduct business contrary to federal law, the company and one of its creditors say.

United Cannabis’ operations and revenues are tied to the sale of legal cannabidiol products extracted from legal industrial hemp, the company and affiliate UC Colorado Corp., also in bankruptcy, said Monday in a filing with the U.S. Bankruptcy Court for the District of Colorado.

Ambria Investors L.P., which loaned United Cannabis $5.8 million in 2019, also filed a brief Monday explaining that the bankrupt company “does not engage in any proscribed activity under the...

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