VALUING A PUT RIGHT BUYOUT

By , March 10, 2016 2:30 pm

Put-right and call-right buy-out provisions in LLC operating agreements are, needless to say, central provisions of these agreements.  The case cited and discussed in the article cited below amply illustrates this point.

31 No. 12 Westlaw Journal Delaware Corporation Law Update 4
Westlaw Journal Delaware Corporation Law Update
February 4, 2016
PECO LOGISTICS LLC V. WALNUT INVESTMENT PARTNERS LP
Copyright © 2016 Thomson Reuters

Investors in a Delaware limited liability company have failed to convince a Chancery Court judge that the process by which their units were valued when they exercised a put right violated implied terms in the controlling LLC agreement.

Peco Logistics LLC v. Walnut Investment Partners LP et al., No. 9978-CB, 2015 WL 9488249, Delaware Chancery Court memo opinion, submitted Oct. 6, 2015, decided Dec. 30, 2015. (Chancellor Bouchard)

 

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