Questioning Prepetition Bankruptcy Bans

Law360, New York (January 5, 2011, 12:06 PM EST) -- While courts have generally held that provisions in prepetition agreements prohibiting bankruptcy filings are void as against public policy, a recent unpublished decision by the Tenth Circuit Bankruptcy Appellate Panel in In re DB Capital Holdings LLC, No. 10-046, 2010 WL 4925811 (B.A.P. 10th Cir., Dec. 6, 2010), calls this principle into question.

Facts

DB Capital Holdings LLC, a manager-operated Colorado limited-liability company, was created to develop and sell a luxury condominium project in Aspen, Colo. DB Capital has one Class A member and one Class...
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