Trustee Charges Directors, Financial Advisors, Others in Failed LBO

Business Valuation UpdateVol. 2 No. 8
Legal and Court Case Update
August 1996

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3843 Dental Equipment and Supplies
339114 Dental Equipment and Supplies Manufacturing
bankruptcy
fraudulent transfer
Healthco International v. Hicks, Muse & Co.
195 B.R. 971, 1996 Bankr. LEXIS 553
May 17, 1996
US
Federal Court
Massachusetts
United States Bankruptcy Court
Valuation Research (solvency opinion)
Queenan

Summary

In this action, the Chapter 7 bankruptcy trustee brings the complaint against "65 defendants and the entire class of selling stockholders, virtually anyone who had anything to do with the LBO … defendants are the buyer, financing banks, debenture holders, directors, officers, controlling shareholders, financial advisors, lawyers and accountants."

See Also

Healthco International v. Hicks, Muse & Co.

Full Text of Court Cases
May 17, 1996

At issue are the fiduciary obligations of directors and controlling shareholders, breach of contract, negligence, gross negligence and bad faith.