blog home Recent Cases In re Intervention Energy Holdings, LLC, 553 B.R. 258 (Bankr. D. Del. 2016)

In re Intervention Energy Holdings, LLC, 553 B.R. 258 (Bankr. D. Del. 2016)

By Los Angeles Bankruptcy Attorney on July 31, 2016

U.S. Bankruptcy Court for the District of Delaware ruled that a provision in a debtor’s operating agreement that permitted its lender to block a bankruptcy filing by voting the lender’s single Common Unit against a filing was unenforceable as a matter of federal bankruptcy policy. What restrictions on filing bankruptcy are/are not against bankruptcy public policy is the subject of many cases, with differing outcomes. An outright prohibition on a company filing bankruptcy IS unenforceable as being against federal bankruptcy policy.

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