Del. High Court Denies Standing To Defunct LLC's Creditor

Law360, New York (September 2, 2011, 7:54 PM EDT) -- Delaware's high court tossed a lawsuit Friday brought by a creditor who loaned $34.2 million to fuel now-bankrupt JetDirect Aviation Holdings LLC's acquisition spree, ruling that a creditor of a bankrupt limited liability company can't file a derivative suit against it.

Delaware's Limited Liability Company Act doesn't give standing to creditors to bring such suits, according to a unanimous ruling of the full Delaware Supreme Court.

"The LLC Act, by its plain language, exclusively limits derivative standing to 'member[s]' or 'assignee[s],' and that exclusive limitation is...
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