Morgans Hotel Recap Should Be Blocked, Judge Hears

Law360, New York (May 13, 2013, 11:25 PM EDT) -- A dissident Morgans Hotel Group Co. director on Monday asked a Delaware Chancery judge to hold up a planned debt-for-equity swap between the company and private equity firm Yucaipa Cos. LLC, claiming his fellow board members manipulated the deal for their own ends.

Counsel for Jason Taubman Kalisman — a director representing OTK Associates LLC, Morgans' largest shareholder — asked Vice Chancellor J. Travis Laster to enjoin the deal, claiming the conflicted board is trying to ram through the deal to preserve their own positions and...
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