In a troubled economy where businesses are struggling to survive, it is no surprise that many organizations find themselves insolvent or nearly insolvent. Directors of insolvent or nearly insolvent organizations are facing the question of to whom they owe their duty of loyalty, and whose best interest must they consider when making decisions. When in the zone of insolvency, directors still owe a duty to stakeholders to act in their best interests.
USA, Insolvency & Restructuring, Litigation, Bricker & Eckler LLP, Shareholder, Unsecured debt, Breach of contract, Fiduciary, Board of directors, Consideration, Economy, Duty of care, Delaware Supreme Court
Centimark Corp. v. Pegnato & Pegnato Roof Mngt, Inc., Case No. 05-708 (W.D. Pa. May 6, 2008)
USA, Insolvency & Restructuring, Litigation, Bricker & Eckler LLP, Bankruptcy, Shareholder, Breach of contract, Board of directors, Federal Reporter, Discovery, Testimony, Withholding tax, Negligence, Prejudice, Spoliation of evidence, Third Circuit