A recent Delaware Court of Chancery decision provided a nuanced analysis to explain its reasoning for not appointing a receiver for a cancelled LLC. In PXP Producing Co. LLC v. MitEnergy Upstream LLC, C.A. No. 2024-0668-MTZ (Del. Ch. June 26, 2025), the complaint also sought nullification of the cancellation on the grounds that the company violated Section 18-804 of the Delaware LLC Act by dissolving without making any provision for specified obligations which, the petitioner argued, made the cancellation unlawful under Section 18-203. The Court discussed whether the claims were time barred under 10 Del. C. Section 8106, and also denied a motion to intervene.

Note a recent Chancery decision addressing similar issues that was highlighted today on these pages.

Highlights • The Court expl

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