Fisker Judge Won't Ax Suit Over Ch. 11 Spinoff Stock Sale

Law360, Wilmington (December 4, 2017, 9:54 PM EST) -- A Delaware bankruptcy judge declined Monday to throw out claims from Fisker Automotive’s liquidating trustee challenging a stake-diluting equity sale from the company spun off after the electric carmaker’s Chapter 11 sale, ruling that the trustee raised plausible concerns there might have been a breach of fiduciary duty.

In a 31-page opinion, U.S. Bankruptcy Judge Kevin Gross wrote that Emerald Capital Advisors Corp. — which manages the trust set up by Fisker’s Chapter 11 plan to facilitate creditor recoveries — adequately alleged that a series of equity...
To view the full article, register now.