Disposition of Partial LLC Interests in Bankruptcy

The most obvious and logical candidates to purchase an estate's LLC interests are the other, non-bankrupt members because the market for selling privately held LLC interests is thin, and dispositions to third parties may raise complications concerning sales of unregistered securities.

8 minute read November 30, 2015 at 11:00 PM
By
Richard J. Mason and Patricia K. Smoots
Disposition of Partial LLC Interests in Bankruptcy

Bankruptcy estates often own a partial interest (typically called a membership interest) in a limited liability company. Sometimes the LLC has been created for proper purposes well before bankruptcy was on the horizon.

This premium content is locked for The Bankruptcy Strategist subscribers only

ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN The Bankruptcy Strategist

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts
Subscribe Now

Already have an account? Sign In Now

For enterprise-wide or corporate access, please contact Customer Service at [email protected] or call 1-877-256-2473.

NOT FOR REPRINT

© 2026 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Continue Reading

Is Your Law Firm’s AI Ready for Answer Engines and Clients?

AI claims are getting more scrutiny and regulators are looking more closely at whether organizations can substantiate what they say their AI does, while courts are beginning to address what happens when AI-generated search summaries get information wrong.

November 01, 2026

When AI Agents Trigger a Crisis, Part 2: Before the Agent Acts

This is the second in a two-part series on AI-driven crises. Part 1 examined communications during an incident while the facts are still developing. Part 2 addresses crisis plans, governance and tabletop exercises before an agent acts on behalf of the business.

November 01, 2026
Centellic Logo

© Copyright 2026 ALM Global, LLC trading as Centellic.

Advertise with Us Customer Support Terms of Service