Partnership and LLC Bankruptcies: Unique Legal Issues and Recent Case Law Developments
Note: CPE credit is not offered on this program
Recording of a 90-minute CLE webinar with Q&A
This CLE course will provide practitioners with an analysis of some of the unique issues that arise in the bankruptcies of partnerships and LLC entities and their partners or members. The panel will address topics in recent partnership bankruptcy cases, as well as how courts cope with the lack of specific Bankruptcy Code provisions addressing such entities.
Outline
- A bankruptcy filing by the partnership or LLC entity
- The statutory and contractual authority of partners to file a voluntary or involuntary petition on behalf of or against the entity
- Definition of "insolvent"
- Effect of the entity's automatic stay upon creditor claims against general partners personally
- Rights of entity or its creditors against partners for fraudulent conveyances and violations of fiduciary duties
- Issues arising from recent high profile law firm bankruptcies
- IRS ruling regarding COD income for partners resulting from cancellation of the partnership's debt in bankruptcy
- Impact of tax reform
- A bankruptcy filing by partner or LLC member
- Continuity of the partnership
- Enforceability of certain ipso facto clauses
- Nature of the partnership agreement as an executory contract
- Transferability of the debtor's economic interest in the partnership or LLC
Benefits
The panel will review these and other key questions:
- Who has the authority to put a general or limited partnership, a limited liability partnership, or an LLC into bankruptcy?
- Will the bankruptcy of a partner cause a dissolution of the partnership or partnership-like entity preventing it from filing bankruptcy?
- What conflicts of interest does a general partner have in filing for bankruptcy personally or in deciding whether to put a partnership or a partnership-like entity into bankruptcy?
Faculty
Michael J. Riela
Partner
Tannenbaum Helpern Syracuse & Hirschtritt
With more than 15 years of experience, Mr. Riela advises companies on complex restructuring, distressed M&A, loan... | Read More
With more than 15 years of experience, Mr. Riela advises companies on complex restructuring, distressed M&A, loan transactions and bankruptcy related litigation matters. He has in-depth experience in advising clients on corporate and real estate bankruptcies, workouts, Chapter 11 and Chapter 7 bankruptcy cases, debtor-in-possession and bankruptcy exit loan facilities, secondary market trading of distressed debt and trade claims, Section 363 sales and bankruptcy retention, and fee agreements and disputes.
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Richard W. Trotter
Attorney
Tannenbaum Helpern Syracuse & Hirschtritt
Mr. Trotter's diverse practice includes litigating a wide variety of complex commercial litigation and bankruptcy... | Read More
Mr. Trotter's diverse practice includes litigating a wide variety of complex commercial litigation and bankruptcy disputes in state, federal and bankruptcy court. Such disputes have involved issues of contract, securities, real estate and bankruptcy law. He has experience with both commercial and municipal bankruptcy context and has worked to preserve and enforce the rights of different parties at all stages of bankruptcy. Mr. Trotter has also overseen and managed cases outside of bankruptcy in defending clients against fraud and breach of contract claims. He has been instrumental in the resolution of lawsuits through motion practice, including cases involving complex expert opinions and analysis.
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