Liquidation analysis for 25% interest in LLC in a Chapter 13
Posted: Thu Sep 25, 2014 10:33 am
Reply-To: Gaurav Datta
X-Original-Return-Path: Gaurav Datta
To: cdcbaa@yahoogroups.com
X-Yahoo-Newman-Id: groups-system
Hi all,
I have a prospective client who has modest assets except for a 25% interest
in an LLC that owns an apartment complex in Las Vegas worth $5 Million.
The liquidation of of the LLC would not be similar to the liquidation of a
real estate holding in a hypothetical 7 since a 25% interest is not enough
to force a dissolution of the LLC. The other members must agree to who
buys the 25% interest and, since the other 3 members are his father,
mother, and brother, that is not going to happen.
The LLC does make a profit via rents and I am anticipating having to do a
net present value analysis on the LLC based on the monthly rent. Before I
jump that far, am I looking at the liquidation of the LLC correctly? Does
the code even care about the reality of trying to liquidate a multi-member
LLC or does the code simply pretend the equity in the LLC's assets = the
liquidation value?
*Gaurav Datta, Esq.,LL.M444 W. Ocean Blvd, Suite 1401*
*Long Beach, CA 90802Phone: 562-435-9062Fax: 562-281-6158*
*www.dattalawgroup.com *
"My formula for success is rise early, work late, and strike oil."
- J. Paul Getty
Hi all,I have a prospective client who has modest assets except for a 25% interest in an LLC that owns an apartment complex in Las Vegas worth $5 Million. The liquidation of of the LLC would not be similar to the liquidation of a real estate holding in a hypothetical 7 since a 25% interest is not enough to force a dissolution of the LLC. The other members must agree to who buys the 25% interest and, since the other 3 members are his father, mother, and brother, that is not going to happen. The LLC does make a profit via rents and I am anticipating having to do a net present value analysis on the LLC based on the monthly rent. Before I jump that far, am I looking at the liquidation of the LLC correctly? Does the code even care about the reality of trying to liquidate a multi-member LLC or does the code simply pretend the equity in the LLC's assets the liquidation value? Gaurav Datta, Esq.,LL.M444 W. Ocean Blvd, Suite 1401Long Beach, CA 90802Phone: 562-435-9062Fax: 562-281-6158www.dattalawgroup.com"My formula for success is rise early, work late, and strike oil."- J. Paul Getty
The post was migrated from Yahoo.
X-Original-Return-Path: Gaurav Datta
To: cdcbaa@yahoogroups.com
X-Yahoo-Newman-Id: groups-system
Hi all,
I have a prospective client who has modest assets except for a 25% interest
in an LLC that owns an apartment complex in Las Vegas worth $5 Million.
The liquidation of of the LLC would not be similar to the liquidation of a
real estate holding in a hypothetical 7 since a 25% interest is not enough
to force a dissolution of the LLC. The other members must agree to who
buys the 25% interest and, since the other 3 members are his father,
mother, and brother, that is not going to happen.
The LLC does make a profit via rents and I am anticipating having to do a
net present value analysis on the LLC based on the monthly rent. Before I
jump that far, am I looking at the liquidation of the LLC correctly? Does
the code even care about the reality of trying to liquidate a multi-member
LLC or does the code simply pretend the equity in the LLC's assets = the
liquidation value?
*Gaurav Datta, Esq.,LL.M444 W. Ocean Blvd, Suite 1401*
*Long Beach, CA 90802Phone: 562-435-9062Fax: 562-281-6158*
*www.dattalawgroup.com *
"My formula for success is rise early, work late, and strike oil."
- J. Paul Getty
Hi all,I have a prospective client who has modest assets except for a 25% interest in an LLC that owns an apartment complex in Las Vegas worth $5 Million. The liquidation of of the LLC would not be similar to the liquidation of a real estate holding in a hypothetical 7 since a 25% interest is not enough to force a dissolution of the LLC. The other members must agree to who buys the 25% interest and, since the other 3 members are his father, mother, and brother, that is not going to happen. The LLC does make a profit via rents and I am anticipating having to do a net present value analysis on the LLC based on the monthly rent. Before I jump that far, am I looking at the liquidation of the LLC correctly? Does the code even care about the reality of trying to liquidate a multi-member LLC or does the code simply pretend the equity in the LLC's assets the liquidation value? Gaurav Datta, Esq.,LL.M444 W. Ocean Blvd, Suite 1401Long Beach, CA 90802Phone: 562-435-9062Fax: 562-281-6158www.dattalawgroup.com"My formula for success is rise early, work late, and strike oil."- J. Paul Getty
The post was migrated from Yahoo.