Plaintiffs moved for summary judgment on their request for appointment of a receiver for the New York Chocolate and Confections Company, Inc. (NYCCC). The Court of Chancery denied the motion, holding that the Plaintiffs failed to prove that NYCCC was insolvent because NYCCC maintained a positive assets-to-liabilities ratio and was backed by an Ivory Coast government agency that practically guaranteed forthcoming financial support. As such, appointment of a receiver was denied because NYCCC did not face an “imminent threat of great loss”.
