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.

18 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.

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