LLC managers beware: get involved with member distributions by an insolvent LLC and you may be personally liable

Vieira v. Harris (In re JK Harris & Co., LLC), 512 B.R. 562 (Bankr. D. S.C. 2012) –

A chapter 7 trustee sued a manager of three limited liability company (LLC) debtors for breach of fiduciary duty and to hold the manager personally liable for distributions made to members, including himself.

Filed under:
USA, South Carolina, Insolvency & Restructuring, Litigation, Troutman Pepper, Fiduciary, Limited liability company, Gross negligence
Location:
USA
Firm:
Troutman Pepper
Decision in Fedders bankruptcy looks at whether lenders aided and abetted debtor in breach of duty of care

Introduction

Filed under:
USA, Delaware, Insolvency & Restructuring, Litigation, Fox Rothschild LLP, Bankruptcy, Debtor, Fiduciary, Board of directors, Debt, Duty of care, Default (finance), Gross negligence, Delaware Supreme Court, United States bankruptcy court, US District Court for District of Delaware
Authors:
L. Jason Cornell
Location:
USA
Firm:
Fox Rothschild LLP
Reform of Spanish insolvency legislation

1

MADRID E-BULLETIN

RESTRUCTURING, TURNAROUND AND INSOLVENCY

REFORM OF SPANISH INSOLVENCY LEGISLATION

On Friday 7 March 2014 the Spanish Council of Ministers approved Royal Decree-Law 4/2014, of 7 March, which adopts urgent measures on the refinancing and restructuring of corporate debt. The above Royal Decree-Law introduces a series of significant reforms to the Spanish Insolvency Act 22/2003, of 9 July, (the "Insolvency Act"). The Royal Decree-Law has entered into force on 10 March 2014.

Filed under:
Spain, Insolvency & Restructuring, Herbert Smith Freehills LLP, Share (finance), Debtor, Liability (financial accounting), Refinancing, Gross negligence
Location:
Spain
Firm:
Herbert Smith Freehills LLP
FDIC issues final rule under orderly liquidation authority provisions of Dodd-Frank Act

In a long awaited action, the Federal Deposit Insurance Corporation (FDIC) issued a final rule on July 6 which addresses the FDIC's rights and powers as receiver of a nonviable systemic financial company under the orderly liquidation authority provisions of Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Filed under:
USA, Banking, Insolvency & Restructuring, Katten Muchin Rosenman LLP, Consumer protection, Unsecured debt, Fraud, Interest, Liquidation, Gross negligence, Subordinated debt, Dodd-Frank Wall Street Reform and Consumer Protection Act 2010 (USA), Federal Deposit Insurance Corporation (USA)
Authors:
Jeffrey M. Werthan
Location:
USA
Firm:
Katten Muchin Rosenman LLP