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Corporations Keyed to Rhee
In re Nantucket Island Assoc. Ltd. Partnership Unitholders Litig.
Citation:
810 A.2d 351 (Del. Ch. 2002)Facts
Plaintiffs are limited partners in Nantucket Island Associates Limited Partnership. The plaintiffs allege that the General Partner had decided to raise new capital. That transaction was a rights offering, which gave the existing limited partners the opportunity to buy one preferred unit for each unit in the partnership they held. The rights offering was guaranteed by an affiliate of the General Partner, defendant Zero Main Associates, which was a special purpose entity formed solely to purchase any preferred units not subscribed to by other limited partners of the partnership.
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