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Rights of General Partner, LLC Member, or Trustee to Exercise Management Rights During the Pendency of a Bankruptcy Case

This table is based on the May 5, 1997 version of Proposal #3 of the Working Group on Small Business, Partnership, and Single Asset Real Estate.

CHAPTER & PARTNERSHIP TYPE

TRUSTEE

DIP

7, Limited Partnership

YES--A

--

7 General Partnership, One General Partner
[ FN: " Partner " is defined to include a general partner or LLC member.]

YES--B

--

7 General Partnership, More than One General Partner

LIMITED-C

--

11, Limited Partnership

YES--A

YES--D

11, General Partnership, One General Partner

YES--B

YES--D

11, General Partnership, More than One General Partner

LIMITED--C

YES--D

Chapters 12 and 13


YES--D

LEGEND

A--Trustee exercises any management rights, subject to order of court transferring management rights if such transfer were in the best interests of the estate.

B--Same as A, except where individual debtor continues to function as a partner and is entitled to future distributions or profits.

C--Unless expressly permitted by agreement, the trustee may only exercise management rights (1) if no other general partners are otherwise authorized to do so, or (2) action cannot otherwise be taken under the partnership agreement, and (3) debtor partner is not an individual who continues to function as a general partner who is entitled to future distributions or profits.

D--Partner is entitled to exercise management rights



 

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