Litigation Warrants: Debt or Equity? Experts Disagree, Court Demurs
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.
Nantahala Capital Partners, LP v. Washington Mutual, Inc. (In re Washington Mutual, Inc.)
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.