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IN RE AVATEX Click to find out why . . .



Keywords & Phrases
CaseNo: C.A. No. 16,334, CourtName: IN THE COURT OF CHANCE OF THE STATE OF DELAWARE, State: DE Delaware, UniqueCaseRef: DE>CC>00016334, CourtCode: CC, Avatex, Merger, Settlement, Del, Preferred Stock, Fees, Stipulation, Revised Merger, Elliot, Proposed Settlement, Expenses, Parties, Approvals, Delaware, Agreement, Xetava, Award, Shareholders, Common Stock, First Series, Individual Defendants, Certification, Preferred Stockholders, Directors, Class Actions, Consolidated Action, Original Merger, Transaction, Consummation, Shareholders Litiq, Chancery Rules, Faruqi, Feffer Llp, Applicable Standards, Elliott Action, Standstill Agreement , ContentID: 120239617

Case Documents
1 1999-12-03 ORDER AND FINAL JUDGMENT
[ see first page and extracted highlights below  ] ItemID: 100394
5 pages
PDF
2 1999-11-30 PLAINTIFFS BRIEF IN SUPPORT OF PROPOSED SETTLEMENT AND APPLICATION FOR ATTORNEYS FEES AND EXPENSES
[ see first page and extracted highlights below  ] ItemID: 103165
32 pages
PDF
3 1999-06-17 STIPULATION OF SETTLEMENT
[ see first page and extracted highlights below  ] ItemID: 100127
25 pages
PDF
Total Documents: 3 documents , 62 pages
Price: $ 29.95


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1 . ORDER AND FINAL JUDGMENT

EXTRACTED KEY WORDS
SETTLEMENT
PLAINTIFFS
CONSOLIDATED ACTION
AGREEMENT
CHANCERY COURT RULES
STIPULATION
REVISED MERGER
SCHEDULING
COURT RULE
REPRESENTATIVES
COUNSEL
DEFENDANTS
ASSERTING
DELAWARE
AVATEX CORPORATION
PURSUANT
ACCORDANCE
ATTORNEYS
HEREBY
MEMBERS
LAW
FEES
EXPENSES
ELLIOTT
AFORESAID SCHEDULING ORDER
PARTIES
ADEQUATE
COMPLIANCE
PROVISIONS
                        IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE

                                    IN AND FOR NEW CASTLE COUNTY

      IN RE AVATEX CORPORATION                             >
       SHAREHOLDERS LITIGATION                             ) Consolidated             :
                                                           )  C A .   N o .  16334-NC
                                                                      --------A_
                                                           1

      ELLIOTT ASSOCIATES, L.P., a Delaware
      Limited Partnership,
                                                           i
                               Plaintiff,

                 V .                                       ) C.A. No.  16336-NC
                                                           >
      AVATEX CORPORATION, et al.,
                                                           :
                               Defendants.                 >


                                      ORDER AND FINAL JUDGMENT

              A hearing having been held before this Court (the "Court") on December 3, 1999,

     to the Court's Order of October  27,1999  (the "Scheduling Order"), upon a Stipulation of

     dated June 17, 1999 (the "Stipulation"), of the above-captioned actions (the "Actions"), which

     incorporated herein by reference; it appearing that due notice of said hearing has been given

     accordance with the aforesaid Scheduling Order; the parties having appeared by their attorneys

     record; the Court having heard and considered evidence in support of the proposed Settlement

     defined in the Stipulation); the attorneys for the parties having been heard; an opportunity

     having been given to all other persons requesting to be heard in accordance with the Scheduling

     Order; the Court having determined that notice to the Class (as defined below) preliminarily

     pursuant to the aforesaid Scheduling Order was adequate and suffkient; and the entire matter

     proposed Settlement having been heard and considered by the Court;

     RWl -2  15624-2
\

SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • ELLIOTT ASSOCIATES, L.P., a Delaware Limited Partnership,
  • A hearing having been held before this Court on December 3, 1999, pursuant
  • to the Court's Order of October 27,1999 (the "Scheduling Order"), upon a Stipulation of
  • defined in the Stipulation); the attorneys for the parties having been heard; an opportunity
  • having been given to all other persons requesting to be heard in accordance with the
  • pursuant to the aforesaid Scheduling Order was adequate and suffkient; and the entire matter
  • The form and manner of notice given to the members of the Class is hereby determined
  • compliance with the requirements of due pros;ess, Chancery Court Rule 23 and applicable law.
  • Based on the record of the Consolidated Action, each of the provisions of Chancery
  • according to the provisions of Chancery Court Rules 23and.
  • plaintiffs have fairly and adequately protected the interests of the Class.
  • class composed of all record and beneficial owners of shares of Avatex Corporation
  • Original Merger Agreement, the Revised Merger Proposal, the Revised Merger Agreement, the
  • Statement and any proxy material public filings or statements by any of the Defendants
  • The plaintiffs, all members of the Class, Class Counsel and plaintiff and counsel for
  • commencing, asserting, prosecuting, continuing or participating in any way in any action
  • the application of plaintiffs' counsel for an award of fees and expenses has become final and

  • 2 . PLAINTIFFS BRIEF IN SUPPORT OF PROPOSED SETTLEMENT AND APPLICATION FOR ATTORNEYS FEES AND EXPENSES

    EXTRACTED KEY WORDS
    PLAINTIFFS
    DEL
    COURT
    SETTLEMENT
    COUNSEL
    FEES
    PREFERRED STOCK
    ELLIOT
    PROPOSED SETTLEMENT
    EXPENSES
    REVISED MERGER
    ATTORNEYS
    AWARD
    SHAREHOLDERS
    CERTIFICATION
    COMMON STOCK
    ORIGINAL MERGER
    LITIGATION
    SHAREHOLDERS LITIQ
    CHANCERY RULES
    FARUQI
    FEFFER LLP
    APPLICABLE STANDARDS
    STANDSTILL AGREEMENT
    NEGOTIATIONS
    ALLIED ARTISTS PICTURES
    BASS GROUP
    DEFENDANTS
    CLASS REPRESENTATIVES
    
            IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
    
                          IN AND FOR NEW CASTLE COUNTY
    
                                           )
    IN RE AVATEX CORPORATION                            CONSOLIDATED
    SHAREHOLDERS LITIGATION                i        CIVIL ACTION NO. 16334 NC
                                           1
    
    
                         PLAINTIFFS' BRIEF IN SUPPORT OF
                      PROPOSED SETTLEMENT AND APPLICATION
                       FOR ATTORNEYS' FEES AND EXPENSES
    
    
    
                                           ROSENTHAL, MONHAIT, GROSS
                                                & GODDESS, P.A.
                                           Joseph A. Rosenthal
                                          Norman M. Monhait
                                           Suite 1401, Mellon Bank Center
                                           P.O. Box 1070
                                          Wilmington, Delaware          19899
                                           (302) 656-4433
    
                                           Liaison Counsel for Plaintiffs
    
    FARUQI  & FARUQI, LLP
    415 Madison Avenue
    New York, New York 10017
    (212) 986-1074
    
    WECHSLER HARWOOD HALEBIAN
     & FEFFER LLP
    488 Madison Avenue
    New York, New York 10022
    (212) 935-7400
    
    
    
    November 30, 1999
    
    
    
                                 TABLE OF CONTENTS
    
                                                                     Paqe
    
    TABLE OF CITATIONS                                                 ii
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • PROPOSED SETTLEMENT AND APPLICATION
  • FOR ATTORNEYS' FEES AND EXPENSES
  • FARUQI & FARUQI, LLP
  • WECHSLER HARWOOD HALEBIAN & FEFFER LLP
  • Certification Is Proper Under
  • PLAINTIFFS' COUNSELS' REQUEST
  • FOR AN AWARD OF ATTORNEYS' FEES
  • Robert M. Bass Group v. Evans,
  • Elliot Associates, L.P. v. Avatex Corp.,
  • In Re BET Holdinqs, Inc. Shareholders Litiq., Del.
  • Original Merger and the means by which it was to be approved.1
  • fiduciary duty by the Individual Defendants -- Avatex's
  • Plaintiffs' counsel served written discovery requests.
  • Elliot and its affiliate Westgate International, L-P., together owned approximately 17% of
  • negotiations with Avatex representatives, which ultimately
  • Revised Merger will be issued.
  • amount equal to 20% of the Net Recovery in the McKesson Litigation divided by the number of
  • Shareholders have entered into a standstill agreement with Avatex
  • Of Class Representatives
  • Court Of Chancery Rules 23And
  • Applicable Standards For Evaluatinq Settlements
  • Allied Artists Pictures Corp. v. Baron,

  • 3 . STIPULATION OF SETTLEMENT

    EXTRACTED KEY WORDS
    MERGER
    DEFENDANTS
    STIPULATION
    COURT
    PREFERRED STOCK
    PARTIES
    APPROVALS
    DELAWARE
    XETAVA
    FIRST SERIES
    AGREEMENT
    INDIVIDUAL DEFENDANTS
    REVISED MERGER
    SETTLEMENT
    PREFERRED STOCKHOLDERS
    PLAINTIFFS
    DIRECTORS
    CLASS ACTIONS
    COMMON STOCK
    TRANSACTION
    CONSUMMATION
    ELLIOTT ACTION
    CONSOLIDATED ACTION
    PARTNERSHIPS
    SETTLED CLAIMS
    PARTIES HERETO
    SURVIVING CORPORATION
    PRINCIPAL EXECUTIVE OFFICES
    HOLDING COMPANY
    
                      IN THE COURT OF CHANCE               OF THE STATE OF DELAWARE
    
                                  IN AND FOR Nl            CASTLE COUNTY
    
    
     IN RE AVATEX CORPORATION                                >
     SHAREHOLDERS LITIGATION                                 ) Consolidated
                                                             ) C.A. No.  16334-NC  /
                                                    -        )>
     ELLIOTT ASSOCIATES, L.P., a Delaware:                   >
     Limited Partnership,                                    >>
                             Plaintiff,                      >>
               V.                                            ) C.A. No.  16336-NC
                                                             >
     AVATEX CORPORATION, et al.,                             1>                                        
                             Defendants.                     >                                  .- .  ^
                                                                                                 -     
                                                                                                 ::i-.
                                                                                                 r .'
                                                                                                 - ;is
                                                                                                       
                                   STIPULATIO:             IF SETTLEMENT
    
    
             The parties .to the above-captioned act'on
                                                     t s, by and through their respective attorneys,
    entered into the following Stipulation of Settle:  elnt (the "Stipulation") subject to the approval
                                                     ;"
    Court of Chancery of the State of Delaware id anId for New Castle County (the "Court"):
    
             WHEREAS,
    
             A. Defendant Avatex Corporatior               ivatex" or the "Company") is a Delaware
    
    tion with its principal executive offices in Dall's,'Texas. Avatex is a holding company that,
                                                     fI
    its subsidiaries, owns interests in hotels arid  (Dffice buildings and in other corporations and
    
    partnerships.
    
    
    RLFI-2004941-3
    
    
    
             B.       Defendant Xetava Corporation ("Xetava"), a Delaware corporation, was formed as
    
    a wholly-owned subsidiary of Avatex for the purpose of effecting a merger of Avatex with and into
    
    
    SNIPPETS:
  • entered into the following Stipulation of Settle: elnt subject to the approval of the
  • Court of Chancery of the State of Delaware id anId for New Castle County:
  • tion with its principal executive offices in Dall's,'Texas.
  • Avatex is a holding company that,
  • Xetava (the "Original Merger").
  • Pecarro, William A. ILemer and John L. Wineapple (collectively, the "Individual Defendants")
  • been directors of Avatex from February 1997 to the present.
  • Convertible Preferred Stock (the "First Series Preferred Stock") and its $4.20 Cumulative
  • notes and a percentage of the outstanding common stock of Avatex.
  • parties were unable to agree on a mutually acceptable form of transaction.
  • Agreement") approved by the Board on April 9,
  • putative class action complaints (the "Class Actions") were filed in the Delaware Court of
  • The Class Actions named as defendants Avatex, Xetava and the Individual Defendants
  • of the Original Merger Agreement by the Avatex Board and the consummation of the Original
  • failure to afford the Preferred Stockholders separate class votes on the Original Merger
  • the Elliott Action also alleged that the Original Merger
  • Original Merger Proposal absent the separate approvals of two-thirds of the First Series and
  • in the Consolidated Action and the Elliott Action granting Defendants'
  • pursuant to Delaware Supreme Court Rule 25, and the plaintiffs in the Consolidated Action did
  • Avatex and the Individual Defend ants agreed on the terms of a revised transaction (the
  • Corporation (the "Revised Merger A eement").
  • the surviving corporation of the Revis d Merger Proposal), including for the purpose of
  • On June 17,1999, the remaining issue relating to the Zucker Voting Agreement and the
  • Settled Claims, Andy in furtherance of the Transaction and the Revised Merger
  • advisors or agents, heirs, executors, trustees, general or limited partners or partnerships,
  • As soon as practicable after the execution of the Stipulation, the parties hereto shall
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