Under the link below is a post in Peter Mahler’s Business Divorce column about an issue that all LLC lawyers should be aware of. The author summarizes the subject of the column as follows:
Can an LLC member with a put option–the right to sell his interest back to the LLC–exercise that option when doing so will render the LLC insolvent? This week’s New York Business Divorce post highlights a recent decision by Justice Masley of the New York County Commercial Division considering this issue.
Here’s the link: