More Mess at Delphi
The Tort of Deepening Insolvency?
Institutional investors have filed lawsuits claiming misleading accounting at Delphi.
I don't know the specifics of the legal claims raised so far, but I suspect there will be more in the future. I recently attended an Indiana Law Update CLE seminar in which the "tort of deepening insolvency" was discussed. Huh? What's that. It's the tort directors and management commits when a company is insolvent, can't become solvent and keeps in business anyway. Invariably some creditors come out better than others. I have a hunch that we will all learn more about the tort of deepening insolvency just by following the progession of the Delphi case.
Lawsuit slams Delphi
Friday, October 07, 2005
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.