High Court Affirms Bankruptcy Ends LLC Membership but Not Member's Economic Interest

Barry Klayman and Mark Felger, writing in the Delaware Business Court Insider, review a recent decision from the Supreme Court of Delaware affirming that the Bankruptcy Code does not preempt the Delaware Limited Liability Company Act to the extent that it divests members of an LLC who file for bankruptcy of the right to participate in the management of the company, but not their economic interest.

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Mark E. Felger

Co-Chair, Bankruptcy, Insolvency & Restructuring

mfelger@cozen.com

(302) 295-2087

Barry M. Klayman

Of Counsel

bklayman@cozen.com

(302) 295-2035


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