Lenders Beware: Division in Delaware
Client Alert | 1 min read | 09.26.18
Recent amendments to the Delaware Limited Liability Company Act (DLLCA) should prompt lenders to take a closer look at their credit agreements and indentures and consider whether updates to those agreements are necessary. Effective August 1, 2018, a Delaware limited liability company (LLC) may divide itself into two or more LLCs and allocate the assets and liabilities of the dividing LLC among itself and/or the newly formed LLCs. This should be of concern to lenders because an allocation of assets by division may not violate the transfer and merger covenants in their loan agreements.
In this client alert, Gregory G. Plotko and Kevin Rubinstein examine the amendments to DLLCA and the safety measures lenders can implement to address this new type of division.
Contacts
Insights
Client Alert | 7 min read | 05.21.26
A New Playbook for M&A in the EU: The European Commission's Draft Merger Guidelines - 10 Key Changes
On 30 April 2026, the European Commission published draft merger guidelines that will replace both the 2004 Horizontal Merger Guidelines and the 2008 Non-Horizontal Merger Guidelines, consolidating them into a single analytical framework.
Client Alert | 3 min read | 05.21.26
Judge Jennifer Choe-Groves Takes Over Several DNJ Hatch-Waxman Cases
Client Alert | 7 min read | 05.19.26
American and Allied Cyber Agencies Issue First Joint Guidance on Securing Agentic AI
Client Alert | 3 min read | 05.19.26
