Court of Chancery of Delaware

In a suit brought by a stockholder seeking to enjoin certain sales of corporate assets, defendant's motion to dismiss is granted where the stockholder lacked standing to maintain the suit as a creditor since, under the terms of redeemable preferred stock at issue, a redemption feature had not and never would give rise to a right to payment against the corporation.

Appellate Information

• Decided 06/29/2006
• Published 07/10/2006

Judges

Court

• Court of Chancery of Delaware

Counsel

• For Appellant:
  
• Kevin G. Abrams, Matthew F. Davis, Abrams & Laster, L.L.P., Wilmington, DE;  Jeffrey B. Storer, Randall W. Bodner, Holly J. Caldwell, Ropes & Gray, L.L.P., Boston, MA, for the Plaintiff.


• For Appellees:
  
• Peter J. Walsh, Jr., Kevin R. Shannon, Timothy R. Dudderar, Potter Anderson & Corroon, L.L.P., Wilmington, DE;  Stephen M. Baldini, Ira S. Dizengoff, Jamison A. Diehl, Akin Gump Strauss Hauer & Feld, L.L.P., New York City, for Defendant Granite Broadcasting Corporation., Christian D. Wright, Young Conaway, Stargatt & Taylor, Wilmington, DE, for Defendants DS Audible San Francisco, LLC, and DS Audible Detroit, LLC.