Georgia Gulf Corp. has sued a New York hedge fund in the Delaware Court of Chancery, asking the court to rule that Georgia Gulf isn’t in default on $100 million in corporate debt.
Georgia Gulf said in court filings it could be forced to file for bankruptcy protection unless the judge rules in its favor. Georgia Gulf filed the suit on June 8 against Sandelman Partners LP of New York, which claimed Georgia Gulf is in default on the payments. Chancery Court Judge Stephen P. Lamb set a trial date of July 21.
Jones Day partners John E. Zamer and Michael J. McConnell and associates Lillian N. Caudle and Walter W. Davis in Atlanta are advising Georgia Gulf. The company is also taking counsel from Potter Anderson & Corroon of Wilmington, Del. Georgia Gulf’s general counsel is Joel Beerman.
Richards Layton & Finger and Bracewell & Giuliani are counsel to Sandelman. Powell Goldstein partner Gregory Worthy in Atlanta is advising U.S. Bank, the trustee for Georgia Gulf’s corporate debt.
Georgia Gulf, of Atlanta, manufactures polyvinyl-chloride products used in the construction, housing and pharmaceutical industries.