Hubert Enterprises, Incorporated, Successor By Merger To Hubert Holding Company - Page 17




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          petitioner sees it, that section allows a member of a limited               
          liability company to promise to contribute additional capital to            
          the company and permits a creditor of the company to enforce that           
          promise in order to receive payment on a debt owed by the company           
          to the creditor.  We disagree with petitioner’s application of              
          this section to the facts at hand.  As stated above, the                    
          operation of the DRO hinges on a liquidation of a member’s                  
          interest in LCL, and a creditor of LCL has no right to compel               
          such a liquidation.  Further, the revised operating agreement               
          does not require LCL to pay the restored deficit to creditors; it           
          allows this amount to be distributed to members with positive               
          capital account balances.  Further, the revised operating                   
          agreement does not confer any rights on a creditor of LCL.  The             
          agreement states specifically that nothing express or implied               
          therein “shall be construed to give to any person or entity,                
          other than the parties or their successors-in-interest * * *, any           

               9(...continued)                                                        
               conditions stated in the articles of organization,                     
               operating agreement or other document evidencing such                  
               agreement.                                                             
                              *    *    *    *    *    *    *                         
                    (c) The liabilities of a member as set out in this                
               section can be waived or compromised only by the                       
               consent of all members; but a waiver or compromise                     
               shall not affect the right of a creditor of the limited                
               liability company who extended credit or whose claim                   
               arose after the filing and before a cancellation or                    
               amendment of the articles of organization, to enforce                  
               the liabilities.                                                       






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Last modified: March 27, 2008