In Re Bicoastal Corp.

CHRISTIE, Chief Justice:

In this case the Court is called upon to decide whether the exercise of a secured creditor’s right to elect a majority of the board of directors of its debtor was a valid corporate act under the circumstances here present. The creditor’s election right was created as part of a complex scheme to protect its substantial investment in the debtor, and it was agreed that it would be triggered upon the failure by the debtor to repay its debt by a specified date. Although the exercise of its election right was delayed by an intervening order of the United States District…