Duties of Directors of Insolvent Delaware Corporations
Prof. Stephen Bainbridge compiles here excerpts from his own writings, and those of others, regarding the issues addressed in the recent Delaware Supreme Court decision rejecting a direct claim by creditors against directors of an insolvent corporation in North American Catholic Programming, Inc. v. Gheewalla, summarized here on my blog. In addition, the good professor refers to the generally related Delaware Chancery Court decision in Trenwick summarized here in which the court rejected a claim for "deepening insolvency". His post is must reading for corporate and bankruptcy lawyers who need to have command of the nuances of this cutting edge topic.
