Another hemp company in the U.S. state of Kentucky has run into trouble as highly-touted whole-plant processor Atalo Holdings Inc. filed for bankruptcy this week.
The Winchester, Kentucky-based company blamed a “a failed capital commitment, which left the company unable to pay its creditors,” Atalo CEO Bill Hilliard said in a statement, adding that a confusing regulatory situation and “unforseen market forces and other challenges” also contributed to current troubles.
Atalo Holdings last year partnered with GenCanna Global, also based in Winchester, to align the two companies’ cultivation operations, and said it had received an investment from GenCanna, which itself filed bankruptcy earlier this year, drawing strong rebukes from Kentucky stakeholders.
One of Kentucky’s hemp pioneers, Atalo, which framed itself as a food, CBD and fiber producer, has interests in technology, crop science, agronomics, and harvesting and processing. Atalo and GenCanna had jointly operated a 147-acre Hemp Research Campus where 100 workers were employed.
Assets $10-$50 million
At the time of the announced deal with GenCanna, Atalo touted the partnership as the largest vertically integrated hemp-derived CBD production, processing and distribution alliance in Kentucky.
Under Chapter 7 bankruptcy protection, the debtor’s assets are sold to pay creditors. Company officials said they hope to continue operations during the bankruptcy proceedings. The company said it has assets of between $10 million and $50 million against liabilities of $1 million to $10 million.