The Delaware Court of Chancery denied a Spanish-language television station operator’s motion to dismiss a breach of contract claim in a lawsuit filed by an affiliate of European hedge fund Brevan Howard Asset Management. Vice Chancellor Sam Glasscock III ruled that the plaintiffs’ lawsuit adequately pleaded that the television network failed to undertake appropriate actions to determine if it had the capital to repurchase its Series B preferred stock.
“The plaintiffs sufficiently allege that the company failed to investigate its options for generating cash that could have been used to repurchase the Series B shares,” Glasscock said in Brevan Howard Credit Catalyst Master Fund Ltd. v. Spanish Broadcasting System. “Accordingly, I find the plaintiffs’ pleadings sufficient to state a claim for breach of contract.”
