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2 Kentucky hemp companies face bankruptcy proceedings

Employees are staying home with pay as crews begin a cleanup fire at GenCanna in Clark County....
Employees are staying home with pay as crews begin a cleanup fire at GenCanna in Clark County. (Photo: WKYT/Nick Oliver)(WKYT)
Published: Jan. 30, 2020 at 10:42 AM EST
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Two Kentucky hemp companies, including one of the state's largest, are facing bankruptcy proceedings.

The Lexington Herald-Leader reported Wednesday that three creditors filed an involuntary bankruptcy petition against GenCanna in federal court in Lexington last week to force the company into Chapter 11 bankruptcy.

The company is one of the state's major producers and has 21 days to respond.

The paper says that earlier this month, the owner of Sunstrand hemp company filed for Chapter 7 bankruptcy in federal court in Louisville.

The proceedings come as Kentucky's Agriculture Commissioner issued a letter to the FDA arguing that the state's hemp industry is being threatened by “bureaucratic paralysis."