wellspring capital management lawsuit

This approach has historically delivered returns well above inflation Our clients Accordingly, SportCo began negotiations with certain of its lenders around a potential restructuring transaction. The February 20, 2018 stated, "You're [sic] economics are going down and the risk of chapter is going up. Corporate Advocacy Program. Id. SaaS, Android, Cloud Computing, Medical Device), Where the organization is headquartered (e.g. 915 0 obj <> endobj In fact, the amended complaint states that the distributions at issue here were made in October 2012 and March 2013. By teaming up with strong management, Wellspring is able to unlock underlying value and In connection with this contemplated purchase, Alexander Carles, a managing partner of Wellspring Capital and an officer and director of SportCo and its subsidiaries, and Bradley Johnson, the president and chief executive officer of SportCo and its subsidiaries, sought to convince Prospect to forbear from exercising any remedies in the event of a payment default. About Wellspring Capital Management Wellspring Capital Management, founded in 1995, is a leading middle-market private equity firm that manages more than $4.4 billion of private equity capital. Id. D.S.C. The Wellspring ruling was not appealed, nor has any trial occurred on this matter. Oct. 14, 2021) (Stickles, J.) Discretionary portfolio management with a difference, Make your investment with Wellspring Capital Management. In King County, the court considered suits by investors seeking to recover losses incurred after the collapse of a structured investment vehicle. July 5, 2017). THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. Cancellation and Refund Policy, Privacy Policy, and Investment Approach Target Investments Wellspring's objective is to acquire or invest in companies that are well-positioned to capitalize on change and can benefit from Wellspring's operating and financial expertise. Wellspring Capital Management LLC operates as a private equity firm. Wellsprings objective is to bring partnership, experience and value creation to each investment. Alexander Carles' and Bradley Johnson's arguments are limited to the negligent misrepresentation cause of action, the only cause of action asserted against them. They are not actionable. Note: This site is for informational purposes only. I Shall [Not] Be Released: Wellspring, Director Releases, breached their duty of care, since the directors refused to reasonably maximize corporate value by killing the restructuring on account of releases/indemnity (, breached their duty of loyalty, since they placed their own self-interests above those of their fiduciaries [. Martin Davis, 72; Created Modern Paramount, "Financial Firm Wellspring Capital to Take Penthouse at 605 Third Avenue", "Wellspring Capital Management taps $1.45bn Fund VI for Cadence Petroleum Group buyout", "SupplyOne Acquires Fellow Packaging Distributor Romanow Container", "Healthcare & Life Sciences Private Equity Deal Tracker: Wellspring Acquires Pentec Health", https://en.wikipedia.org/w/index.php?title=Wellspring_Capital_Management&oldid=1118006247, This page was last edited on 24 October 2022, at 18:15. A second amendment to the Loan Agreements (the "Second Amendment") was executed on September 30, 2014. The December 26, 2017 email stated, "So you will waive [your interest payments]. Therefore, a finding that Prospect is a subsequent creditor would require dismissal of the first and second causes of action. Wellspring Capital Management is an American private equity firm focused on leveraged buyout investments in middle-market companies across a range of industries. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. Otherwise you cannot get paid." The United States Court of Appeals for the Third Circuit wasted no time getting the new year off to a roaring start through its ruling in In re LTL Mgmt., LLC, Case No. This is the best way to manage and repair your business reputation. Angel, Fund of Funds, Venture Capital), General contact email for the organization. (Compl. NEW YORK, Jan. 10, 2018 /PRNewswire/ -- Wellspring Capital Management LLC ("Wellspring") today announced the successful closing of Wellspring Capital Partners VI L.P. ("Fund VI") with capital commitments totaling the hard cap of $1.415 billion. REGISTRATION STATUS . 0 These emails can hardly be considered negligent misrepresentations. By continuing to use this website, you agree to UniCourts General Disclaimer, Terms of Service, The defendants' motions rely on Federal Rule of Civil Procedure 12(b)(6). Oil Producers Hand $128 Billionto Investors as Doubts Grow About Future of Fossil Fuels, Your Saturday Briefing: Trumps Comeback Plan, Wall Street Whistles Away, British Parents Turn to Home Equity to Help Young Buy Property, Japanese Unions Seek Biggest Pay Rise in 25 Years for Workers, Sorry, Fed, Most US Mortgage Rates Were Locked In During Pandemic Lows, Italys CDP Is Nearing Offer for Telecom Italia Network. E-mail: [email protected]; Videos. Wellspring Capital Management, founded in 1995, is a leading middle-market private equity firm that manages more than $3 billion of private equity capital. REGISTRATION STATUS. Finally, in West Side Fed. Wellspring targets investments with the following characteristics: Follow along as he lays out the blueprint for his career, and takes us all the way from his first sketch to his thriving personal brand, Spunge. The defendants' remaining arguments need not be addressed. Div. Most of them do not even contain any concrete information about the proposed AcuSport purchase or the likelihood of the Borrowers' default. The Wellspring court dismissed the litigation trusts claim for breach of the fiduciary duty of care, holding that it was not adequately pled. The firm functions as a strategic rather than tactical partner, providing management teams with top-line support, M&A experience and financial expertise, and access to resources. Environmental, Social and Governance (ESG), HVAC (Heating, Ventilation and Air-Conditioning), Machine Tools, Metalworking and Metallurgy, Aboriginal, First Nations & Native American. The courts analysis of the duty of loyalty claim can be fairly characterized as limited, consisting of four short paragraphs that largely restate or simply quote the complaint. While New York law and South Carolina law have slightly different tests for avoiding constructive fraudulent conveyances, there exists a common thread which is not satisfied hereinsolvency at the time of the transfer. Amazon Pauses Construction on Second Headquarters in Virginia as It Cuts Jobs, Amazon Is Closing Its Cashierless Stores in NYC, San Francisco and Seattle, iPhone Maker Plans $700 Million India Plant in Shift From China, Stock Traders Are Ignoring Blaring Bond Alarms, S&P 500 Notches Best Week Since Late January: Markets Wrap. It featured lower-priced clothing and was Gymboree's direct competitor for The Children's Place and Old Navy.. Wellspring brought its assets under management to more than $4.4 billion as of January 2018. at 382. Later emails berate Prospect's representative for failing to agree to the AcuSport purchase more quickly. Over the past 27 years, Wellspring has invested in over 50 platform investments and completed over 80 add-on acquisitions across various segments of the U.S. and global economies. Exempt Reporting Advisers ("ERA") are investment advisers that are not required to register as investment advisers because they rely on certain exemptions from registration under sections 203 (l) and 203 (m) of the Investment Advisers Act of 1940 and related rules. After all, corporate decisionmakers are often tasked with choosing a path where outcomes are at best uncertain. Bill Dawson is taking time off from his $2.2 billion private equity firm Wellspring Capital Management, which will investigate the claims of . Since its founding in 1995, Wellspring has raised over $4.0 billion of initial capital commitments through . View contacts for Wellspring Capital Management to access new leads and connect with decision-makers. A litigation trust formed through the SportCo bankruptcy then sued, among others, SportCos former directors and its equity sponsor. Accordingly, Wellspring reinforces the importance of disinterested governance and arms length dealing in connection with the restructuring process. Their most recent acquisition was Caring Brands International on Oct 25, 2021. Jan. 25, 2016) (alteration original). In Fall 2018, SportCo Holdings, Inc. (SportCo) was facing severe financial distress. Va. Mar. SportCo later filed a free fall bankruptcy and liquidatedallegedly causing substantial losses for unsecured creditors that would not have occurred had SportCo accepted that agreement in principle allegedly reached in December 2018. About Wellspring Capital Management Wellspring Capital Management is a leading private equity firm headquartered in New York. Total number of employee profiles an organization has on Crunchbase, Total number of Crunchbase contacts associated with this organization, Descriptive keyword for an Organization (e.g. . 6. Id. When it comes to helping companies that show promise, Wellspring Capital Management is overflowing with support. Tow v. Rafizadeh (In re Cyrus II P'ship), 413 B.R. Adversary Proceeding No. At Wellspring we pride ourselves on client service. Wellspring also rejected in cursory fashion the defendants argument that it is not necessarily a breach . Importantly, however, the Wellspring court declined to dismiss the litigation trusts duty of loyalty claim, stating on a cursory basis that Drawing all inferences in favor of the Trustee, the Complaint contains sufficient allegations that the D&O Defendants breached their duty of loyalty regarding the Failed Out of Court Restructuring. Id. The parties disagree on what law should applyfederal or state, and further if state law applies, New York or South Carolina. [Amended Complaint, 49]. The plaintiff responds that Prospect is a preexisting creditor because the distributions were not made until after Prospect became a creditor when the Loan Agreements and the Amendments were signed. Wellspring Capital Management is a leading private equity firm headquartered in New York. The defendants argue that this cause of action must be dismissed because the alleged misrepresentations were forward-looking statements and opinions; therefore, they are not actionable and cannot form the basis for a negligent misrepresentation cause of action. 2021 by wellspring capital Management. $46H$DrGHi`0I"DE$"J(aH! 23, 2006) (stating that some courts characterize fraudulent conveyance actions as tort actions, while others characterize them as matters in equity). 91], F. Hewitt Grant [Docket No. from 8 AM - 9 PM ET. The 2011 Wellspring Capital Partners V LP was fully invested at $1.2 billion and has generated positive returns for its investors to-date. The complaint must provide more than mere "labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do." Contact:KekstMark Semer or Peter Hill212.521.4800, Cision Distribution 888-776-0942 The basic complaint is that Wellspring directors put self-interests above those of the company and its creditors. 101 (32). Litigation. Fax: 877 376-7003. PLEASE SEE THIS LINK FOR FULL DISCLAIMER: https://www.wellspringcapital.co.uk/disclaimer. New York law regarding third party beneficiaries provides: With respect to South Carolina's choice of law analysis, South Carolina conflict of law principles provide that "the substantive law governing a tort action is determined by the state in which the injury occurred." Financial terms of the transaction were not disclosed. Type: Company - Private. W.D. [Amended Complaint, 32]. The plaintiff's third cause of action, for negligent misrepresentation against defendants Wellspring Capital, Mr. Carles, and Mr. Johnson, must also be dismissed. New York law prohibits both actual and constructive fraudulent conveyances. We charge a minimal base fee and the rest is performance fees we generate for clients and not on the amount of capital clients allocate. On March 7, 2013, the Borrowers entered into a First Amendment to the Loan Agreements (the "First Amendment"), pursuant to which Prospect loaned the Borrowers an additional $60 million. The Company specializes in private companies buyouts, acquisitions of divisions and subsidiaries of public companies, and going . Since its founding in 1995, Wellspring has raised over $4.5 billion of initial capital commitments through six private equity funds. As a result, the defendants argue, it would be unjust for Prospect to now be able to avoid the distributions. ), Create custom alerts for specific article and case topics and, I took a free trial but didn't get a verification email. Tex. PLEASE SEE THIS LINK FOR FULL DISCLAIMER: This site is for informational purposes only. D.S.C. Wellspring Capital Management Group LLC ("Wellspring"), a New York-based private equity firm, announced that on May 29, 2020, it closed the acquisition of Steele Solutions, Inc. ("SSI" or the "Company"), a value-add supplier into the industrial automation sector.