Rel liquidating trust
But, duty-of-care claims are exculpated by Radio Shack's charter.So, all claims against parties in their capacities as directors must be dismissed. First, Standard General and its chief investment officer, Soohyung Kim, caused Magnacca to be appointed to the board of American Apparel, a struggling affiliate of Standard General. According to the Trust, Standard General's attempts to co-opt Magnacca's loyalty manifested themselves both in actions and assurances.I find no cognizable claim that any of the directors of Radio Shack, including Magnacca, breached his or her duty of loyalty.It is possible that the directors may have breached their duty of care.While the Court recognized that the existence of the agreements between the parties might preclude a recovery under the theory of unjust enrichment at a later stage in the proceedings, the Court allowed the claim to proceed past the motion to dismiss stage as an alternative claim with the understanding that the trust’s other “claims may fail and leave [the trustee] without a remedy at law.” Court expressly concluded that the trustee’s avoidance powers under § 548 extend to extraterritorial transfers.In doing so, the Court significantly expanded the ability of debtors in possession and trustees to pursue defendants under § 548 for transactions occurring outside the United States.
Count two states a claim for breach of the duty of care against Magnacca in his capacity as CEO. Radio Shack Corporation was a well-established retailer of consumer electrical goods for almost a century.
As a result, businesses must remain mindful that all pre-petition transactions with a potentially insolvent party are likely to be evaluated as a source of potential claims.
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In return, Magnacca allegedly guided Radio Shack into an ill-fated recapitalization transaction with Standard General and away from other alternatives that would have brought more value to the company.
Then, they led him to believe that other opportunities awaited him.The plaintiff alleged that BMW did not deliver engines or other products to Fisker under the agreements.