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Court Of Chancery Explains Dissolution Statute

Posted In LP Agreements

Techmer Accel Holdings LLC v. Amer,  C.A. 4903-VCN (December 29, 2010)

This decision explains when Section 17-804 of the Delaware Limited Partnership Act comes into play.  That may have important consequences as it is under that statute governing dissolutions that the Court may control distributions to partners that might hurt its creditors.  But as this decision points out,  if that statute is not in play,  the distributions are controlled by a different statute that lacks judicial enforcement provisions and might leave creditors to their own devices.

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