We use cookies on this site to enable your digital experience. By continuing to use this site, you are agreeing to our cookie policy. close

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.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.