In connection with a recent dispute among LLC members, the Court of Chancery discussed an apparent issue of first impression in Delaware: The rights of the fiduciary of a debtor who seeks to help a creditor-entity that the fiduciary has an interest in. In Skye Mineral Investors, LLC v. DXS Capital (U.S.) Limited, C.A. No.
Seibold v. Camulos Partners LP, C.A. No. 5176-CS (Del. Ch. Sept. 17, 2012).
Issue Addressed: Did hedge fund breach the limited partnership agreement by not distributing to the departing partner his capital investment?
Short Answer: Yes. In addition, the Court addressed many related claims and issues in connection with the departure of …