Morgans Hotel Board Learns SandRidge 'Proxy Put' Lesson

Law360, New York (June 18, 2013, 3:50 PM EDT) -- Morgans Hotel Group Co. said Tuesday its board's ouster last week won't force the company to buy back its debt because it had already approved the dissident directors for the purposes of its covenants, heeding a recent lesson from Delaware court.

In a regulatory filing, Morgans — whose seven incumbent directors were voted out by wide margins Friday — said the shake-up would not trigger change-of-control provisions in about $88 million in outstanding notes that would have forced the company to repurchase the debt at a...
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