The Delaware Bankruptcy Court refused to enforce a provision in the debtor's LLC operating agreement requiring a unanimous vote of the debtor's members to authorize the debtor to file for bankruptcy.

Despite its seemingly straightforward requirements, section 503(b)(9) has been the subject of litigation by debtors and creditors alike.

The United States Court of Appeals for the Ninth Circuit recently held that the bankruptcy court has authority to recharacterize as equity, rather than debt, advances of funds made purportedly as a loan to the recipient prior to its bankruptcy.