HARBINGER CAPITAL v. GRANITE BROADCASTING

C.A. No. 2205-N.

906 A.2d 218 (2006)

HARBINGER CAPITAL PARTNERS MASTER FUND I, LTD., Plaintiff, v. GRANITE BROADCASTING CORPORATION, DS Audible San Francisco, LLC, and DS Audible Detroit, LLC, Defendants.

Court of Chancery of Delaware, New Castle County.

Decided: June 29, 2006.


Attorney(s) appearing for the Case

Kevin G. Abrams, Matthew F. Davis, Abrams & Laster, L.L.P., Wilmington, DE; Jeffrey B. Storer, Randall W. Bodner, Holly J. Caldwell, Ropes & Gray, L.L.P., Boston, MA, for the Plaintiff.

Peter J. Walsh, Jr., Kevin R. Shannon, Timothy R. Dudderar, Potter Anderson & Corroon, L.L.P., Wilmington, DE; Stephen M. Baldini, Ira S. Dizengoff, Jamison A. Diehl, Akin Gump Strauss Hauer & Feld, L.L.P., New York City, for Defendant Granite Broadcasting Corporation.

Christian D. Wright, Young Conaway, Stargatt & Taylor, Wilmington, DE, for Defendants DS Audible San Francisco, LLC, and DS Audible Detroit, LLC.


OPINION

LAMB, Vice Chancellor.

A holder of mandatorily redeemable preferred stock sues to enjoin certain sales of assets that, allegedly, both violate the terms of an indenture governing senior notes issued by the corporation and constitute transfers in fraud of the corporation's current and future creditors. The corporation moves to dismiss on the ground that the plaintiff is not a creditor and, thus, lacks standing to bring the claims asserted....

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