The bank is trying to defeat the Chapter 11 by suing him on his personal guarantees, but then they also wanted him to sign all his rights away when he renewed his loans. How can a bank do this?
Because the Chapter 11 filing was just the LLC only the LLC gets the protection of the automatic stay in bankruptcy. The lenders are still free to pursue your husband personally based on his guarantee of the loans. I’m pretty sure bank didn’t ask him to “sign away all his rights” nor could it have done so. But when the loans come up for renewal, that typically means the current loan is ending and must be paid in full unless the lender agrees to renew it, and the lender is free to ask for additional security or for changes in the loan terms in order to renew the loan. In effect, the renewal process is very much like seeking a new loan. The bank reviews the borrower’s credit, income, debts, collateral, etc., and decides what it will require to make the loan. None of that is illegal or even improper. That's simply the business of commerical lending.
That said, I've not read the particular loan contracts at issue here, so I don't know exactly how the loans your husband has work. If your husband didn’t like the terms of the renewal, he probably should have tried to get another lender to refinance the loans for him on terms he liked better, if he could find a willing lender to do it. When loans have balloon terms or renewal terms, you have to be prepared to pay off the loan if the lender isn’t willing to renew or extend a new loan to cover it.
Your husband’s attorney should be able to review the contracts and advise him of his options to deal with this, including what to do about the lenders going after him on the personal guarantees. It may be that he'll need to file bankruptcy personally, too, if he wants to slow the lenders down and get him breathing space to try working out a deal that would allow him to keep these properties.