case United States English original

Manichaean Capital, LLC v. Exela Technologies, Inc.

Delaware Court of Chancery decision recognizing outsider reverse veil-piercing as a possible, exceptional remedy where corporate affiliates are allegedly used to avoid an appraisal judgment.

Brief English Introduction

The court allowed an outsider reverse-piercing theory to proceed at the pleading stage because the alleged structure would otherwise leave a judgment creditor without an effective remedy.

Use It For

Use this with the SPC FaDaWang Q&A and Singapore’s reverse-piercing cases to compare how courts protect creditors without harming innocent shareholders or creditors of affiliated entities.

Teaching Notes

The safeguards matter: reverse piercing is treated as rare, creditor-facing, and sensitive to third-party prejudice.