Bad news for midstream counterparties of bankrupt oil & gas producers: you may not be able to rely (as much as you might have expected) on covenants “running with the land” to save your contracts from rejection in bankruptcy.
USA, New York, Energy & Natural Resources, Insolvency & Restructuring, Litigation, Pillsbury Winthrop Shaw Pittman LLP, Bankruptcy, United States bankruptcy court
On May 4, 2015, Vice Chancellor Travis Laster of the Delaware Court of Chancery issued a decision in Quadrant Structured Products Co., Ltd. v. Vertin,1 analyzing creditors’ standing to bring derivative claims against directors and officers of Delaware corporations. Building on the Delaware Supreme Court’s jurisprudence regarding fiduciary duties owed to creditors,2Vice Chancellor Laster’s opinion has two primary holdings.
USA, Delaware, Insolvency & Restructuring, Litigation, Pillsbury Winthrop Shaw Pittman LLP, Fiduciary, Derivative suit, Delaware Court of Chancery, Delaware Supreme Court