Court Refuses Appointment of a Custodian Under DGCL Section 226(a)(3) to Continue Defunct Corporation

Barry Klayman and Mark Felger, writing in the Delaware Business Court Insider, discuss a recent decision in the Delaware Court of Chancery refusing to appoint a custodian pursuant to Delaware General Corporation Law Section 226(a)(3) to continue the business of a defunct corporation. Although the vice chancellor denied the petition based on the language of the statute, his opinion appears to abandon the court’s previous policy against permitting the revival of defunct Delaware corporations for use as blank check companies.

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Mark E. Felger

Co-Chair, Bankruptcy, Insolvency & Restructuring

mfelger@cozen.com

(302) 295-2087

Barry M. Klayman

Of Counsel

bklayman@cozen.com

(302) 295-2035


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