Valuation Is Irrelevant to Establish Knowledge by Stranger to Indenture of Its Breach

Business Valuation UpdateVol. 10 No. 8
Legal and Court Case Update
August 2004

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5211 Lumber and Other Building Materials Dealers
444110 Home Centers
bankruptcy
bankruptcy
In re Hechinger Investment Company of Delaware, Inc.
2004 U.S. Dist. LEXIS 5537
March 28, 2004
US
Federal Court
Delaware
United States District Court
Andrew K. Glenn, Carl N. Kunz, Claude D. Montgomery, Clay J. Pierce, David E. Ross, David M. Friedman, Howard W. Schub, Ian D. Katz, Jeffrey D. Ganz, Jeremy Ryan, John Cambria, Mark Minuti, Marvin C. Peguese, Michael F. Bonkowski, Paul S. Samson, Peter
Dr. Israel Shaked (for Hechinger Liquidation Trust) <br> Louis Paone (for Bankboston Retail Finance, Inc. and General Electric Capital Corp. ) <br> Robert Rock (for Bankboston Retail Finance, Inc. and General Electric Capital Corp.)
Robinson

Summary

The issue in this case was whether an acquired company was worth more or less than a loan amount an indenture’s negative pledge covered.

See Also

In re Hechinger Investment Company of Delaware, Inc.

Full Text of Court Cases
March 28, 2004

Claim for equitable lien denied on the basis that the creditor (Chase) negotiated a loan in good faith without knowledge of the negative pledge against the company (Builder's Square).