Case Study: SV Investment Partners V. Thoughtworks

Law360, New York (December 1, 2011, 1:42 PM EST) -- SV Investment Partners and affiliated funds (PE Investors) brought a lawsuit in Delaware Chancery Court against Thoughtworks Inc. (Issuer) for a declaratory judgment of the meaning of “funds legally available” (FLA) related to Issuer’s obligation to redeem Series A Preferred Stock.

The Delaware Supreme Court, in SV Investment Partners LLC, et. al. v. Thoughtworks Inc., No. 107, 2011 (Del. S. Ct., Nov. 15, 2011), upheld the Chancery Court’s decision that PE Investors failed to prove Issuer had sufficient FLA to redeem the preferred stock. This decision...
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