Bridgeport holdings liquidating trust
The court also held that an exculpatory clause in the corporation's charter was not a sufficient basis for dismissal of separate fiduciary duty of care claims in light of the breach of loyalty claims.Please do not hesitate to use the contact information included in the Memorandum if you have any questions.Case law, particularly the seminal Delaware case , guides directors and officers of companies facing bankruptcy on their fiduciary duties and offers practical steps for directors and officers to shield themselves from liability.Legal battles arise in bankruptcy over whether the proceeds of a D&O policy belong to the estate or the individual directors and officers.Law360 (December 12, 2007, AM EST) -- The liquidating trust for Bridgeport Holdings Inc.has flung a lawsuit at the defunct company's directors, alleging that they slacked off when a subsidiary began declining and agreed to a rushed, underpriced sale that led to bankruptcy. The lawsuit centers on what happened after a group of investors acquired Micro Warehouse, a...
denying in part and granting in part the motions of the directors and officers of Bridgeport Holdings Inc.
In August 2003, with its sources of liquidity and trade credit tightening, the directors hired a restructuring advisor and approved an exit strategy.
After the directors decided to proceed with a sale of the company’s assets, one director called upon a long-time acquaintance, the chief executive officer of a competitor, CDW Corporation, to discuss the possibility of a transaction between the two companies.
Though they may have assumed they had adequate coverage, directors and officers may face significant out of pocket legal fees to establish their right to insurance proceeds.
Listen as our authoritative panel of attorneys explains the fiduciary duties of directors and officers when a company faces insolvency and offers their differing perspectives on how to identify the existence of a potential claim against the former directors and officers, interpret the applicable insurance policy, and how to investigate, prosecute and, if possible, resolve such claims.