Case: Crossover Financial I, LLC, Case No. 11-24257 SBB (Bankr.D.Colo. 2012).
Discussion: Order Denying Second Motion to Dismiss Chapter 11 Case for lack of Authority to File. This Matter came before the Court for an evidentiary hearing on May 12, 2012.
The central issue before the Court is whether the sole member and manager of an LLC lacked the statutory and contractual authority to file a Chapter 11 case, placing the LLC into bankruptcy, where creditors contended the sole member/manager (“Mr. Yellen”) acted without the requisite contractual authority pursuant to the Debtor’s Operating Agreement and the Security Agreement held by the secured creditors (collectively the “DeCelles Creditors and Mr. Reineke”).
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