In Virginia Broadband, LLC (Bankr. W.D. Va. Sept. 9, 2013), the unsecured creditors committee moved to dismiss an LLC’s chapter 11 bankruptcy case alleging a flaw in the authorization of the LLC’s bankruptcy filing caused by an authorizing member’s individual bankruptcy filing. Specifically, the committee alleged that when the authorizing member filed his individual bankruptcy case, Virginia law divested him of his non-economic (voting) rights in the LLC. The bankruptcy court disagreed and found that such state law constitutes an ipso facto clause, invalidated by the Bankruptcy Code. As such, both the authorizing member’s economic and non-economic rights in the LLC (1) became property of his bankruptcy estate upon filing; and (2) were revested in him upon dismissal of his individual bankruptcy case. The bankruptcy court thus found no flaw in the LLC’s bankruptcy filing and denied the unsecured creditors committee’s motion to dismiss the LLC’s bankruptcy case.