In this oral argument before the Delaware Supreme Court, Quadrant Structured Products Company, Ltd. appealed from the June 5, 2012 decision of the Court of Chancery, which ruled that the claims alleged in the company's amended complaint against insolvent Athilon Capital Corp. and other defendants are barred by no-action clauses in trust indentures. In October 2011, Quadrant commenced a derivative action against Athilon's directors and others, seeking to recover assets that have already been misappropriated by insiders and to enjoin further destruction of Athilon's residual value. Quadrant also asserted direct fraudulent transfer and other claims against EBF & Associates, LP. Quadrant filed the amended complaint in January 2012.
The judgment of the Court of Chancery was reversed in part and remanded.