One of the largest hemp processing companies in Kentucky is filing for Chapter 11 bankruptcy.
GenCanna’s filing Thursday in the U.S. Bankruptcy Court in the Eastern District of Kentucky, if granted, would allow the company to operate while seeking options including refinancing or finding an entity to buy the company.
GenCanna launched in Winchester, Kentucky, in 2014 when the state legalized the cultivation of hemp under a pilot program. GenCanna processes hemp into products made from CBD, a compound many users claim has medicinal benefits. The company in past years had invested heavily in marketing throughout the state, buying billboard space in west Kentucky and becoming last year’s title sponsor for the Kentucky State Fair.
Company CEO Matty Mangone Miranda in a statement said the bankruptcy process will allow GenCanna to navigate several ongoing issues that include an uncertain regulatory environment surrounding hemp and CBD and a “legal dispute” in west Kentucky.