Browse
Archive Cases
- By Attorney
- By Case Name
- By Judge
- By Jurisdiction
- By Law Firm
- By Parties
- By Practice Area
- By Witness
Allied Capital v. GC Sun Holdings, et al - Trial
Overview
Case Name:
Allied Capital v. GC Sun Holdings, et al - Trial
Case Number:
1954-VCS
Start Date:
August 25, 2008
End Date:
August 29, 2008
Description:
This matter stems from a $10 million promissory note Allied Capital Corp. held from GC-Sun Holdings LP. The note contained a restrictive convenant prohibiting GC-Sun from incurring any additional debt unless it was subordinated to the $10 million note.
However, there was a restructuring of GC-Sun Holdings in 2004 that resulted in the creation of two new entities, Brafasco Holdings II Inc. and GC-Sun Frontier Investors LLC. The defendants allegedly made an investment in Brafasco that was not subordinated to the $10 million note. As a result, GC-Sun Holdings had only "trivial" funds left to repay Allied Capital.
Allied Capital sued for breach of contract, breach of implied good faith, tortious interference with contract, breach of fiduciary duty, aiding and abetting breath of fiduciary duty, fraudulent conveyance, civil conspiracy and unjust enrichment.
However, there was a restructuring of GC-Sun Holdings in 2004 that resulted in the creation of two new entities, Brafasco Holdings II Inc. and GC-Sun Frontier Investors LLC. The defendants allegedly made an investment in Brafasco that was not subordinated to the $10 million note. As a result, GC-Sun Holdings had only "trivial" funds left to repay Allied Capital.
Allied Capital sued for breach of contract, breach of implied good faith, tortious interference with contract, breach of fiduciary duty, aiding and abetting breath of fiduciary duty, fraudulent conveyance, civil conspiracy and unjust enrichment.
Parties
- Plaintiff - Allied Capital
- Defense - GC Sun Holdings, et al
Location & Judge
Judge:
Leo E Strine Jr
Courthouse:
New Castle County Courthouse
500 North King Street
Wilmington, DE 19801
courts.delaware.gov/Courts/Court%20of%20Chancery/
500 North King Street
Wilmington, DE 19801
courts.delaware.gov/Courts/Court%20of%20Chancery/
Jurisdiction:
State Trial Court
Delaware Court Of Chancery
Delaware Court Of Chancery