Kentucky hemp fiber manufacturer Sunstrand has filed for bankruptcy protection in federal court.
The privately held company filed for Chapter 7 bankruptcy, a type of bankruptcy sometimes called straight or liquidation bankruptcy.
Based in Louisville, Sunstrand said it has between $100,001 and $500,000 in assets but owes more than $10 million.
Its listed creditors include Hemp Traders, a California hemp-fiber importer and wholesaler, and Nature’s Root, a Colorado company that makes CBD-infused skin-care products.
Sunstrand’s filing comes as fiber manufacturers struggle to find markets for their products and state officials complain that the hemp industry is facing “bureaucratic paralysis” because of federal inaction on CBD regulations.
The company did not share a debt-repayment plan with the court.
– Associated Press and Hemp Industry Daily
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