SCOOP: Federal judge widens path to bankruptcy relief

A federal judge's ruling could expand access to bankruptcy protections for some cannabis businesses and their owners.

In late June, U.S. bankruptcy judge Dennis Montali denied a landlord's motion to dismiss a Chapter 7 bankruptcy filing by a San Francisco tenant whose assets are largely ownership stakes in cannabis companies.

"The court holds that administering the ownership interests of LLCs that engage in marijuana business is not necessarily equivalent to administering marijuana assets," Melloni ruled. (Read the order.