Over the objections of the U.S. Department of Justice, a federal appeals court on Thursday backed the bankruptcy filing of a real estate holding company that has indirect ties to the marijuana industry.

A three-judge panel of the U.S. Court of Appeals for the Ninth Circuit affirmed the Chapter 11 repayment plan submitted by Cook Investments of Arlington, Washington.

The U.S. trustee, part of a Justice Department program overseeing the administration of bankruptcy cases, had argued that a bankruptcy court should reject the plan because the company received rental income from a state-licensed marijuana grower.