Hemp Company Atalo Holdings Files for Bankruptcy

Hemp Company Atalo Holdings Files for Bankruptcy

Atalo is at least the third hemp company in Kentucky to file for bankruptcy this year. Another industrial hemp company has filed for bankruptcy at a time when the burgeoning industry is struggling to find its bearings in the face of numerous challenges. Atalo Holdings Inc., based in Winchester, Ky., has filed for Chapter 7 bankruptcy protection, mainly citing issues with capital. The company was one of the first hemp processing companies in Kentucky following the passage of the Agricultural Act of 2014 (the 2014 Farm Bill). The vertically integrated hemp research, production and processing company aimed to develop “reliable pathways to market for consistent hemp CBD [cannabidiol], superfood and fiber with emphasis on traceable, certified seed genetics, proven agronomics, and the mechanization of growing and harvesting,” it says on its website. “Hemp processors, along with our farmers and other partners, have essentially created an entirely new agricultural industry. The path to success has been impeded by ‘confounding guidance’ from regulatory agencies, unforeseen market forces and other challenges,” says Atalo CEO Bill Hilliard in a news release. “Atalo, in particular, was impacted by a failed capital commitment, which left the company unable to pay its creditors.” Atalo says it hopes to continue operation while it proceeds with its bankruptcy filing. Chapter 7 bankruptcy requires the company to sell its assets to pay creditors. The filing says the company estimates that it has assets of between $10 million and $50 million and liabilities of $1 million to $10 million. “The inability…

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Source : CANNANNEW REPORT
Link to original : Hemp Company Atalo Holdings Files for Bankruptcy
reposted by Cannabis News World

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