Blocking a Bankruptcy Filing Still a Remote Possibility

Overview


Darren Azman and Michael Galen wrote this bylined article on the recent decision In re Lake Michigan Beach Pottawattamie, calling it an example of the limits on a lender’s ability to create a bankruptcy-remote entity. “The decision in Pottawattamie serves as a reminder that when creating or modifying a blocking director’s obligations in a debtor’s organizational documents, a bankruptcy filing can never be absolutely prohibited,” the authors wrote.

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