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AMERICAN GENERAL v. CONTINENTAL AIRLINES

Civ. A. No. 8390.

622 A.2d 1 (1992)

AMERICAN GENERAL CORPORATION, a Texas corporation, and American General Life Insurance Company, a Texas corporation, Plaintiffs, v. CONTINENTAL AIRLINES CORPORATION, a Delaware corporation, and Texas Air Corporation, a Delaware corporation, Defendants.

Court of Chancery of Delaware, New Castle County.

Decided: May 14, 1992.

Attorney(s) appearing for the Case

Jesse A. Finkelstein, Richards, Layton & Finger, Wilmington, for plaintiffs.

Paul P. Welsh, Morris, Nichols, Arsht & Tunnell, Wilmington, for defendants.

HARTNETT, Vice Chancellor.

In 1987 this Court found that the defendants, Continental Airlines Corporation ("Continental") and Texas Air Corporation ("Texas Air"), had breached a provision in an 1983 Loan Agreement between American General and Continental that provided that American General was entitled to receive the same stock option that was given to the employees of Continental as part of the 1987 merger between Continental and its majority stockholder Texas Air...

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