22Dec
Delaware Court Nixes Deal Due to Seller’s Failure to Operate in “Ordinary Course” During COVID-19
The decision leaves the door open for buyers to argue that inflexible ordinary course covenants can provide a basis to terminate a transaction in which a seller does not suffer an MAE. Key Points: ..The Delaware Court of Chancery’s ruling illuminates how other courts may analyze pre-closing operational covenants following business disruptions due to the pandemic. ..The court reaffirmed the high bar to establish an MAE, holding that a carveout to an MAE definition need not expressly include...
By:
Latham & Watkins LLP
Source Url: https://www.jdsupra.com/legalnews/delaware-court-nixes-deal-due-to-seller-86706/
Related
Opportunities abound for dealmakers who can navigate the ever-changing global life sciences deal lan...
Read More >
Amid widespread business disruptions and economic uncertainty caused by the COVID-19 pandemic, many ...
Read More >
On December 20, 2019, the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE ...
Read More >
Thirteen states and the District of Columbia are suing to block the $26 billion plan to merge T-Mobi...
Read More >
On June 20, 2019, New York lawmakers passed a pair of bills aimed at eliminating pay disparities bas...
Read More >
It’s all coming up Elon these days for Tesla and its stock. “Positive developments” from the elec...
Read More >