Delaware Business Litigation Report

Court Of Chancery Explains What Is Commercially Reasonable

Edgewater Growth Capital Partners LP v. H.I.G. Capital Inc., C.A. 3601-CS (February 28, 2013, revised April 18, 2013)

When a secured creditor forecloses on its line, the resulting sale must be "commercially reasonable."   What does that mean exactly?  This decision provides guidance to answer that question.  For example, just because the lender works with the company to get the best price does not mean the resulting sale to the lender is tainted.

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