ANGELO, GORDON & CO. v. ALLIED RISER CORP.

C.A. No. 19298.

805 A.2d 221 (2002)

ANGELO, GORDON & CO., L.P., JMG Capital Partners, LLC, Sagamore Hill Hub Fund, Ltd., JMG Triton Offshore Fund, Ltd., Peninsula Capital Advisors, LLC, Guardfish LLC, and Anda Partnership, Plaintiffs, v. ALLIED RISER COMMUNICATIONS CORPORATION, a Delaware corporation, Gerald K. Dinsmore, R. David Spreng, Donald Lynch, and Blair P. Whitaker, Defendants.

Court of Chancery of Delaware, New Castle County.

Decided: January 30, 2002.


Attorney(s) appearing for the Case

Donald J. Wolfe, Jr., Esquire, Kevin R. Shannon, Esquire, Rebecca L. Scalio, Esquire, Potter Anderson & Corroon, Wilmington, Delaware; and Dale C. Christensen, Jr., Esquire (argued) and John J. Galban, Esquire, Seward & Kissel LLP, New York, New York; Attorneys for Plaintiffs.

Allen M. Terrell, Jr., Esquire (argued), Thad J. Bracegirdle, Esquire, Andrea K. Short, Esquire, Richards, Layton & Finger, Wilmington, Delaware; and Patricia J. Villareal, Esquire, Thomas R. Jackson, Esquire, Jones, Day, Reavis & Pogue, Dallas, Texas; and Geoffrey S. Stewart, Jones, Day, Reavis & Pogue, Washington, D.C.; Attorneys for Defendants.


MEMORANDUM OPINION

LAMB, Vice Chancellor.

This is a request for a preliminary injunction against a merger between two telecommunications companies brought by the creditors of one who claim that the transaction is a breach of contractual duties owed to them under the terms of the notes they hold. In addition, they claim that the directors of the allegedly insolvent company have breached their fiduciary duties by authorizing and recommending the merger...

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