Court of Chancery of Delaware
Harbinger Capital Partners Master Fund I, Ltd. v. Granite Broadcasting Corp., 2205-N
The financial accounting treatment of an issue of redeemable preferred stock as debt, rather than equity or something between debt and equity, is not a sufficient reason to confer standing on a holder of such stock to sue the corporation in the capacity of a creditor, because the redemption feature has not and never will give rise to a right to payment against the corporation.
Appellate Information
- Decided 06/29/2006
- Published 07/14/2006
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.