Overview
On February 17, 2023, Bloomberg Law quoted Nate Kritzer in a piece titled "Electric Vehicle Makers Eye SPAC Stock Fixes in Delaware Hearing." The article discusses multiple businesses seeking retroactive validation for common stock issued as part of a blank-check merger with a shell entity in a Delaware court. An influx of more than 20 petitions followed a December ruling in an unrelated case that suggested only one single class of shareholders could vote on increasing the number of company shares.
In regards to the issue, Kritzer said: "It's hard to see this causing any form of corporate Armageddon because you don’t have any real wrongdoer and you don’t have any real victims. It’s just a technical issue." Kritzer added that if the court doesn’t resolve the apparent conflict, Delaware lawmakers will, because "the last thing that they would want to see is some relatively harmless error lead to some really bad outcome because of some form of issue with their laws."
Read the full article at Bloomberg Law [subscription required].
