In re Cencom Cable Income Partners, L.P.

Plaintiffs, limited partners of Cencom Cable Income Partnership, L.P. ("Partnership"), sued defendants over the appraisal and sale of nine cable systems. In this post-trial memorandum opinion, the court addressed not only the import of the disclosures that a certain law firm, which had been retained to assure that plaintiffs' rights would be protected, had been retained to assure that the process would be "fair" to plaintiffs, but also plaintiffs' other challenges, including primarily whether the general partner manipulated to its benefit the process by which the partnership assets were valued and sold and whether approval by the limited partners of the sales process, which established a price and provided for interest on that amount following a date certain until distribution of the sales proceeds, acted to deprive plaintiffs of the right to any quarterly distributions following the start of the period during which interest would be paid. The court held that the appraisal and sale process did not deny plaintiffs the benefit of their bargain. Under the circumstances, it was fair and, to the extent that certain obligations were not precisely met, plaintiffs were not damaged. Accordingly, the court held that defendants were entitled to the entry of judgment in their favor and the dismissal of the action. View "In re Cencom Cable Income Partners, L.P." on Justia Law