Barrett v. Denver Tramway Corporation

LEAHY, District Judge.

Diversity and the requisite amount establish jurisdiction. A reclassification plan of a solvent Delaware corporation involving alteration of rights of preferred stock presents the question. This is a modification of a type of plan which has recently become current. The plan proposes creation of prior preferred stock and an offer of such new shares to holders of present preferred in exchange for old shares by cancellation of existing claims to accrued dividends but preserving the right to such dividends in the form of a liquidating preference in the new stock. Present…