WHEN EXERCISING A PUT RIGHT WILL MAKE THE LLC INSOLVENT

September 15, 2020

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:

https://www.nybusinessdivorce.com/2020/08/articles/uncategorized/departing-llc-members-exercise-your-put-option-before-insolvency-approaches/

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