Clint Morse, a partner in the Greensboro office of Brooks Pierce, recently spoke on partial business interests in bankruptcy as part of the 39th Annual Bankruptcy Institute. Morse presented with J.P. Cournoyer of Northen Blue.
The two attorneys discussed the highly unsettled and evolving law concerning treatment of small business interests in bankruptcy. In particular, they focused on the owner of an interest in a multi-member LLC. They dissected the splits of authority into three different frameworks: all rights transfer to the bankruptcy estate; the executory contract model; and the dissociation model, then discussed who controls the LLC under each model and what interest the trustee can convey under each model.
Presented by the North Carolina Bar Association, the Bankruptcy Institute is the largest bankruptcy-focused continuing legal education offering in North Carolina.