A creditor that has been assigned a corporation’s assets is entitled to arbitrate its allegations that its debtor was subject to a breach of contract, Delaware Court of Chancery Vice Chancellor Sam Glasscock III has ruled.
According to Glasscock’s letter opinion in CVD Equipment v. Development Specialists, CVD Equipment Corp. contracted to sell unspecified equipment to Stion Corp. When Stion hit insolvency, it assigned its assets to creditor Development Specialists Inc. Development Specialists has retained the legal right to sue to enforce payment of its debt.
