By: Michael DeRosa
St. John’s Law Student
American Bankruptcy Institute Law Review Staff
In In re AMC Investors, the Delaware district court reversed the bankruptcy court’s decision granting summary judgment in favor of the officers and directors (“Defendants”) of AMC (the “Company”) because Eugenia, as the sole creditor, was granted derivative standing to file suit on behalf of the debtors of the Company. Prior to being granted derivative standing, Eugenia filed involuntary Chapter 7 bankruptcy petitions against the debtors in 2009. The bankruptcy court granted summary judgment in favor of the Defendants, which was based on Defendants’ statute of limitation defense. Eugenia and the debtors (collectively “Plaintiffs”) appealed summary judgment.