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March 17, 2023

Section 365 May Be Solution To 10th Circ. Ch. 7 Ruling

By Shane G. Ramsey


In an article published by Law360 on March 1, 2023, Nelson Mullins partner Shane Ramsey examines how Section 365 of the Bankruptcy Code may offer a solution to a 10th Circuit Chapter Seven ruling. 

"In a November decision, Malloy v. Trak-1 Technology Inc., also known as In re: Kramer, the U.S. Bankruptcy Appellate Panel for the Tenth Circuit held that a Chapter 7 trustee could not sell a limited liability company membership interest pursuant to Section 363 of the Bankruptcy Code because of a transfer restriction within the LLC operating agreement," said Ramsey. "...Section 365 of the Bankruptcy Code may offer the solution to this problem."

Ramsey is a Vice Chair of the firm's bankruptcy and financial restructuring practice group. He regularly represents committees of unsecured creditors, indenture trustees, secured creditors, unsecured creditors, bondholders, noteholders, liquidation trustees, plan administrators, disbursing agents, and other entities in bankruptcy reorganizations, liquidation proceedings, and bankruptcy related litigation.

Law360 subscribers can read the full article here.