Recent Posts

Creditor’s Fiduciary Duty Claims Proceed Based on Traditional Insolvency Test
Posted on 8 May 2015 by Francis G.X. Pileggi

Quadrant Structured Products Company, Ltd. v. Vertin , C.A. No. 6990-VCL (Del. Ch. May 4, 2015) [ an enhanced version of this opinion is available to subscribers ]. This Court of Chancery opinion is destined to be cited as a seminal ruling... Read More

Creditors’ Rights to Pursue Derivative Claims Against Company Directors Under Delaware Law
Posted on 12 May 2015 by Kevin M. LaCroix

In a detailed May 4, 2015 opinion ( here ), Vice Chancellor Travis Laster of the Delaware Chancery Court extensively reviewed the rights of an insolvent company’s creditors to pursue derivative claims against the company’s directors [ an enhanced... Read More

Excess D&O Insurers Not Required to Drop Down to Fund Insolvent Underlying Insurer Gaps
Posted on 3 Oct 2011 by Kevin M. LaCroix

In a case involving multiple ghosts of long lost companies, a judge in federal court in Manhattan has held that excess D&O insurers do not have a duty to "drop down" to fill the gaps in coverage caused by the insolvency of underlying... Read More

Delaware Supreme Court Affirms: Creditors Have No Right to Derivative Suit in LLC Context
Posted on 6 Sep 2011 by Francis G.X. Pileggi

CML V, LLC v. Bax, No. 735, 2010 (Del. Supr. Sept. 2, 2011), read Delaware Supreme Court opinion here . Delaware's High Court confirmed that creditors of an insolvent LLC are not given standing by the Delaware LLC Act to pursue derivative claims... Read More

Tags: insolvency