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Creditors' Rights blog
September 13, 2016. Delaware Bankruptcy Court Holds LLC Operating Agreement Provisions Placing Sole Power in the Company’s Lender to Prevent a Bankruptcy Filing are Void as Against Public Policy. In re: Intervention Energy Holdings, LLC. 2016 WL 3185576 (Bankr. D. Del. 2016). The court relied on opinions from various courts to the effect that contractual provisions restricting the right to a bankruptcy discharge and the right to file bankruptcy are unenforceable as against public policy. 831 F2d 1291 (7.
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