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Way To Grow Dismissal Sought

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Corey Inniss, a secured creditor of Way To Grow, Inc., filed with the U.S. Bankruptcy Court a motion for the Court to abstain by dismissing the cases pursuant to 11 U.S.C. section 305(a)(1) or, in the alternative, to dismiss the cases pursuant to 11 U.S.C. section 1112(b). The motion explains, “This entire Chapter 11 case is about funding the Debtors’ reorganization with funds from businesses that are illegal under federal law. The Debtors have made it clear that any future plan for the Debtor ‘is tied to the growing cannabis industry.’ With this pronouncement, the Debtors openly state that the only proposed way they can reorganize is to use the protection provided under federal bankruptcy law to increase their revenues from customers in the cannabis business. A plan of reorganization cannot be confirmed pursuant to 11 U.S.C. section 1129(a)(3) as no plan can be ‘proposed in good faith and not by any means forbidden by law.’ Federal bankruptcy law cannot be used to reorganize businesses that support and further the growth of businesses that are illegal under federal law. Second, this is a two-party dispute between the Debtors and Mr. Inniss, related to the Debtors’ default on a note held by Mr. Inniss. In fact, the Debtors filed bankruptcy on the last business day before their deadline to respond to Mr. Inniss’s Complaint filed in Larimer County, where the parties were already set for a hearing on Mr. Inniss’s Motion to Appoint a Receiver over the Debtors. Due to Mr. Byrd’s mismanagement of the Debtors, Mr. Inniss’s collateral is in danger of being materially injured or impaired during the pendency of this action. All creditors would be benefitted by the preservation of the value of the business that a receivership action can bring.”

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