Harbinger Capital Partners Master Fund I, Ltd. v. Granite Broadcasting Corp.

How courts have described this case

Verbatim parenthetical descriptions written by other courts when citing this decision. Ranked by citation-network relevance.

• holding that plaintiff, a preferred stockholder, did not hold debt and therefore was not a creditor with standing under the New York uniform fraudulent transfer act
• holding that an instrument is equity where it provides “no guaranteed right of payment” and the holder’s “fate . . . is tied directly to [the corporation’s] business fortunes”
• rejecting an argument that mandatory redemption feature made preferred stock a debt instrument
• “The holder of preferred stock is not a creditor of the corporation, and therefore does not have access to the remedies available to a creditor in addition to those generally available as a stockholder.”
• “Even where preferred shares in some way straddle the line between debt and equity, the cases which have grappled with that question in the context of bankruptcy law have held, almost universally, that those shares are forms of equity.”

Source: CourtListener parenthetical corpus (CC0).