How is Insolvent Partner defined in a legal contract?
- Insolvent Partner means a partner that assigns their assets for the benefit of creditors, voluntarily declares bankruptcy, is declared bankrupt or insolvent by a court judgment, files a plea seeking their own reorganization, adjustment, liquidation, or similar relief under any applicable law, or agrees or fails to dispute principal allegations of a petition filed against them in any relative proceedings. They might also consent to the appointment of a trustee, receiver, or liquidator of their assets, or where one has been appointed without their consent. Seen in 1 SEC filing
- Insolvent Partner means any partner who voluntarily initiates proceedings under any bankruptcy or insolvency law, assigns their assets for the benefit of creditors, or is unable to contest the insolvency proceedings filed against them. They also have written admission to their inability to pay their debts or have their assets, or their partnership interest, been the subject of a legal seizure. Seen in 1 SEC filing
- Insolvent Partner means a partner who experiences an insolvency event, including declaring bankruptcy, having a receiver appointed for their affairs, making an assignment for the benefit of creditors, or being unable to fulfil their commitments under an agreement primarily due to financial reasons. Seen in 1 SEC filing
Note: pulled this data out of the SEC EDGAR Database of 500,000 records from the past 22 years of filings. We regularly update this page as new filings and definitions come in.
yourself to verify these results. We are always keen to point people to source documents.
Which definition should you use?
🤔 has combined and improved the above descriptions to create market-standard 'Genie definitions' below, with guidance on which documents and which industry to use for each.
Genie Definition 1
- Insolvent Partner means a partner who voluntarily initiates insolvency proceedings, assigns assets to creditors, is declared insolvent, or can't fulfill business commitments.
Relevant Contract Type
Relevant Circumstances
- Formation of a partnership or LLC
- Execution of a shareholder agreement
- Launch of a joint venture
- Investment or funding rounds
- Mergers and acquisitions
- Business dissolutions or exits
Relevant Sectors
Insolvent Partner means a partner who voluntarily initiates insolvency proceedings, assigns assets to creditors, is declared insolvent, or can't fulfill business commitments.
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