Greg Werkheiser Quoted in Law360 on Rennert Verdict
Morris Nichols partner Greg Werkheiser provided commentary to Law360 in its analysis of the $118 million jury verdict in Magnesium Corp. of America et al. v. Renco Group Inc. et al. The case concerned “so-called fraudulent conveyances” extracted by Ira Rennert and his firm from Magnesium Corp. of America in the late 1990s. The magnesium producer entered bankruptcy in 2001.
In light of this verdict, Greg noted that, “Managers and investors are going to need to be more mindful of the risk of adverse creditor trustee actions if the fortunes of such companies turn.” To reduce the probability of exposure, Greg said, “Companies ought to prepare documented analyses that look at likely future valuations of a company that can be used as supporting evidence for any decision to extract money, in addition to the general due diligence associated with any corporate process that must be airtight to ensure the transaction isn’t vulnerable.”
Read the full article at law360.com, available here.