COURT OF CHANCERY

OF THE 

STATE OF DELAWARE

 JOHN W. NOBLE 417 SOUTH STATE STREET

VICE CHANCELLOR DOVER, DELAWARE 19901

 TELEPHONE: (302) 739-4397

 FACSIMILE: (302) 739-6179

April 9, 2015

Stephen P. Lamb, Esquire Kevin G. Abrams, Esquire

Paul, Weiss, Rifkind, Wharton J. Peter Shindel, Jr., Esquire 

 & Garrison LLP Abrams & Bayliss LLP 

500 Delaware Avenue, Suite 200 20 Montchanin Road, Suite 200 

Wilmington, DE 19801 Wilmington, DE 19807

Thad J. Bracegirdle, Esquire

Wilks, Lukoff & Bracegirdle, LLC 

1300 N. Grant Avenue, Suite 100

Wilmington, DE 19806

Re: AM General Holdings LLC v. The Renco Group, Inc.

 C.A. No. 7639-VCN

The Renco Group, Inc. v. MacAndrews AMG Holdings LLC

 C.A. No. 7668-VCN

Date Submitted: April 2, 2015

Dear Counsel:

On March 25, 2015, the Court entered a temporary restraining order 

preventing the Renco Parties1from using the assets of Ilshar Capital LLC 

(“Ilshar”) to pay a substantial judgment recently entered in the Southern District of 

 

1

The Renco Group, Inc., Ira L. Rennert, and ILR Capital, LLC are the “Renco 

Parties.”

EFiled: Apr 09 2015 02:57PM EDT 

Transaction ID 57054285

Case No. Multi-Case
AM General Holdings LLC v. The Renco Group, Inc.

 C.A. No. 7639-VCN

The Renco Group, Inc. v. MacAndrews AMG Holdings LLC

 C.A. No. 7668-VCN

April 9, 2015

Page 2

New York in an unrelated matter. That order also prohibited the Renco Parties 

from using Ilshar’s assets to obtain an appeal bond.

The risk that Ilshar’s funds would be used for such purposes has been 

substantially reduced by the posting of a supersedeas bond to cover the risk of 

nonpayment of the judgment. There does remain a risk, but it is significantly 

reduced from the potential harm that supported entry of the temporary restraining 

order. 

The Renco Parties had resisted AM General Holdings LLC’s (“Holdco”)

efforts at discovery in support of its motion for a preliminary injunction. They 

now seek to terminate the preliminary injunction process initiated by Holdco and 

to have the temporary restraining order vacated because the potential harm—the 

risk that Ilshar’s assets will be used for purposes of the New York judgment—has 

been substantially reduced. 
AM General Holdings LLC v. The Renco Group, Inc.

 C.A. No. 7639-VCN

The Renco Group, Inc. v. MacAndrews AMG Holdings LLC

 C.A. No. 7668-VCN

April 9, 2015

Page 3

Holdco pursued the interim injunctive relief because of the potential 

exposure of Ilshar’s funds. The risk it identified was real, even if there was a 

speculative aspect to it. If there had been no New York judgment, it is unlikely 

that Holdco’s injunctive relief efforts would have occurred last month. That 

potential for irreparable harm has abated to the extent that, at least on the present 

record, the expedited scheduling of a preliminary injunction is no longer 

warranted. 

The scope of discovery for preliminary injunctive purposes has been a 

principal topic of debate between the parties. That discovery, such as discovery 

into the self-dealing transactions by the Renco Parties over the last several years, 

goes to the core of the dispute in the case in chief and is better addressed in the 

regular course of this proceeding—not as an appendage to expedited proceedings. 

If the Renco Parties are being unreasonable and recalcitrant, as Holdco seems to 

suggest, the appropriate way to obtain the discovery is through a motion to compel. 
AM General Holdings LLC v. The Renco Group, Inc.

 C.A. No. 7639-VCN

The Renco Group, Inc. v. MacAndrews AMG Holdings LLC

 C.A. No. 7668-VCN

April 9, 2015

Page 4

Accordingly, the temporary restraining order entered on March 25, 2015, 

will be vacated and will expire as of 11:59 p.m. today. Unless the Renco Parties 

file a claim within five days against the security posted by Holdco for the 

temporary restraining order, that bond will be released. The preliminary injunctive 

process is no longer justified and, for present purposes, this proceeding no longer 

needs expedited handling.

IT IS SO ORDERED.

Very truly yours,

/s/ John W. Noble

JWN/cap

cc: Joel Friedlander, Esquire

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