Creditors of insolvent Delaware corporations have recourse against corporate directors and officers whose disloyal or self-dealing conduct reduces the corporation’s assets available for distribution. Delaware courts have held that directors and officers of insolvent corporations owe fiduciary duties to creditors as the principal stakeholders in the remaining corporate assets. Where those duties are breached, creditors have standing to bring actions derivatively on behalf of the corporation for damages to the corporation. However, in a recent decision by Vice Chancellor J.
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USA, Delaware, Company & Commercial, Insolvency & Restructuring, Litigation, Troutman Pepper, Shareholder, Breach of contract, Fiduciary, Board of directors, Limited liability company, Standing (law), Stakeholder (corporate), Default (finance), Delaware General Corporation Law, Delaware Court of Chancery, Court of equity
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