• Can Lenders Prevent LLC Bankruptcy Filings? A Recent Decision Highlights the Debate
  • December 23, 2010
  • Law Firm: Kaye Scholer LLP - New York Office
  • On December 6, 2010, in an unpublished opinion, the Bankruptcy Appellate Panel (“BAP”) of the Tenth Circuit Court of Appeals addressed significant issues with respect to commonly found provisions in LP and LLC agreements limiting the authority of such entities to file bankruptcy petitions. The Court declined to invalidate provisions of a limited liability company operating agreement that restricted the right of a manager, without unanimous consent of the LLC’s members, to take steps to institute a bankruptcy.