Litigation Warrants: Debt or Equity? Experts Disagree, Court Demurs

Business Valuation UpdateVol. 18 No. 3
Legal and Court Case Update
March 2012

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6011 Federal Reserve Banks
521110 Monetary Authorities-Central Bank
Nantahala Capital Partners, LP v. Washington Mutual, Inc. (In re Washington Mutual, Inc.)
2012 Bankr. LEXIS 1
January 3, 2012
US
Federal Court
Delaware
United States Bankruptcy Court
Charlotte Chamberlain (debtors); Barry Levine (investors)
Walrath

Summary

Bankruptcy court finds that “litigation tracking warrants” held by investors are equity as opposed to debt claims, based primarily on testimony by the creators of the warrants rather than the parties’ financial experts.

See Also

Nantahala Capital Partners, LP v. Washington Mutual, Inc. (In re Washington Mutual, Inc.)

Full Text of Court Cases
January 3, 2012

Bankruptcy court finds that “litigation tracking warrants” held by investors are equity as opposed to debt claims, based primarily on testimony by the creators of the warrants rather than the parties’ financial experts.