Cede & Co. v. Technicolor, Inc. - Civil Action No. 7129, 2003 Del. Ch. LEXIS 146 (Del. Ch. Dec. 31, 2003)

Rule:

Post-judgment interest is awarded only on the principal amount of the judgment in order to preserve the fundamental fairness imperative of the simple interest determination.

Facts:

The shareholder dissented from a cash-out merger at $ 23 per share. Following the first appraisal trial, the matter was remanded for a second appraisal trial.

Issue:

Was a post-judgment interest proper?

Answer:

Yes.

Conclusion:

 The court determined the nature and scope of the proceeding, which included valuing the corporation as a going concern as of the date of the cash-out merger and taking into account a particular corporate operating plan. The discounted cash flow method was used for valuation. The court, in reaching its valuation, determined and then added together the value of the retained businesses and the cash flow generated through selling four divisions. It thereafter subtracted corporate debt and performed calculations to arrive at a share value. The court determined that simple post-judgment interest was proper.