Contract Ruling in Law Debenture Trust Co. v. Maverick Tube Corp.
Contract Ruling...In one of the appeals decided today, the Second Circuit dealt with an alleged
breach of an indenture.
In Law Debenture Trust Co. v. Maverick Tube Corp., No. 08-5668,
plaintiff noteholders in defendant corporation sued for breach of
contract and unjust enrichment based on defendant’s refusal to allow
certain noteholders to convert their notes to cash and stock following
the acquisition of defendant. The district court granted summary
judgment to defendant.
The Second Circuit affirmed, holding that, under the express terms
of the indenture, the acquirer was not a “Public Acquirer” because its
securities that were traded on the New York Stock Exchange were not its
ordinary shares.
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