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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.

Click here to read the client alert. 

Insights

Client Alert | 6 min read | 07.17.25

Code of Practice for General-Purpose AI Models Published: Compliance Just Got Clearer (Participation Still Optional)

On 11 July 2025, the European Commission published the final version of its Code of Practice for General-Purpose Artificial Intelligence (GPAI). This Code is meant to serve as a tool for GPAI model providers, helping them to comply with the transparency, copyright and security provisions governing general-purpose AI models as set out in the AI Act (arts. 53 and 55), which will become applicable on 2 August 2025. Adherence to the Code is on a voluntary basis....