News

Kentucky hemp processor files for bankruptcy protection

Kentucky’s Commissioner of Agriculture calls the bankruptcy filing by hemp processor GenCanna a gut punch to the industry and to farmers who dared to hope and risk growing hemp.

Ryan Quarles said the GenCanna bankruptcy is the latest sign the national hemp industry is facing “strong headwinds.”

GenCanna filed for Chapter 11 bankruptcy protection last week.  In a statement, the company says filing for bankruptcy allows GenCanna to continue operations and serve customers as they work through reorganization, resolve an outstanding legal issue, and navigate an uncertain regulatory environment.  The company says it might also seek a buyer.

The Kentucky Hemp Industries Association criticized GenCanna, calling it a fraud corporation that knew it wouldn’t have the ability to pay its farmers.

GenCanna’s CEO says the company’s senior lender has provided ten million dollars in additional financing.