Law360 Reports on Victory for Olshan Client Stilwell Activist Investments, LP in Delaware Bankruptcy Court

Law360 (subscription required) has reported on the decision by the U.S. Bankruptcy Court for the District of Delaware denying the request of chapter 11 debtor Silvergate Capital Corporation for a temporary restraining order to halt the company's annual shareholder meeting sought by Olshan client Stilwell Activist Fund L.P., seeking election of Joseph Stilwell to Silvergate’s board of directors. Mr. Stillwell was seeking a board seat to try to maximize value for shareholders during the bankruptcy case. In declining to enjoin the post-filing shareholder meeting that was ordered by a state court prior to the filing date, the Bankruptcy Court upheld the general rule that corporate governance matters, including post-filing shareholder meetings, are not stayed by the automatic stay imposed by the Bankruptcy Code absent “clear abuse". The Bankruptcy Court ruled in favor of Stilwell, concluding that the conduct of an annual shareholder meeting was not “clear abuse” and allowed the shareholder meeting to occur, at which Mr. Stillwell was elected, by an overwhelming majority, to the Silvergate board of directors. After the ruling, Olshan partner Thomas Fleming commented, “We are grateful that the court allowed the meeting to proceed and that common shareholders will at last have a true representative on the board to fight for them.” Olshan litigation partner Thomas Fleming, partner and Chair of Olshan’s Bankruptcy & Financial Restructuring group Adam Friedman, and litigation counsel Jacqueline Ma represented Stilwell in this matter.