You are here

In re 301 W North Avenue, LLC

24 B 2741
Creditor filed a motion to dismiss Debtor’s chapter 11 case on the grounds that Debtor had not obtained the prepetition consent of an independent manager, and therefore lacked authority to file for relief under the Bankruptcy Code.  HELD: Debtor’s LLC agreement required the consent of its independent manager prior to filing a petition.  The evidence showed that Debtor did not confer with the independent manager and did not obtain her consent.  Since Debtor did not establish that the independent manager resigned prepetition, acquiesced to the bankruptcy filing or ratified it, Debtor lacked authority to file the petition.  Additionally, Debtor’s corporate organization documents did not impermissibly restrict its right to file for relief under the Bankruptcy Code.  Therefore, cause existed to grant the creditor’s motion and dismiss the bankruptcy case.  The court denied creditor’s request to impose a bar to refiling.

Date: 
Monday, January 6, 2025