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Kenetech 1, Shareholders 0
1 December 1999
One time California wind giant Kenetech Corp has prevailed in one of its many lawsuits, this one brought by shareholders who own preferred stock. Quadrangle Offshore (Cayman) LLC and Cerberus Partners LP, had filed suit in 1998 claiming Kenetech was in liquidation, and that preferred stockholders were therefore entitled to payment of $1012.50 per share, to be paid before common stockholders were paid. Kenetech had "acted in bad faith" they alleged. The Delaware Court of Chancery had issued a temporary restraining order on December 28, 1998, that stopped Kenetech from using the proceeds of its $247 million sale of the EcoElectrica Project to pay off any debts. But on October 14, Vice Chancellor Myron T Steele ruled in Kenetech's favour on all counts. Mark Lerdal, President and CEO of Kenetech comments: "The company is pleased with the court's decision. We can now move forward with this cloud removed." Stock prices nearly doubled on the news and are currently trading at $0.54 per share.
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