Vistar Media Wins Again Over Note-Equity Conversion Challenge

Delaware’s highest court blocked an effort by venture capitalists and angel investors to convert their investments in Vistar Media Inc. into equity.

The Delaware Supreme Court’s order Friday upheld a trial court’s ruling that the firms were only entitled to repayment with interest at the maturity date of their convertible promissory notes with the advertising technology startup.

The order signed by Justice Gary F. Traynor didn’t elaborate on the high court’s decision to uphold the Delaware Chancery Court’s opinion. Chief Justice Collins J. Seitz Jr. and Justice N. Christopher Griffiths also heard the appeal; a panel of three justices typically ...