In Cyrus II, the court also acknowledged that the Fourth Circuit has found otherwise and determined that state choice of law rules should be used in bankruptcy cases. Its success is based on a portfolio that, since inception in 2014, has delivered double digit returns on an annualised basis. Wellspring Capital Management is a leading private equity firm headquartered in New York. The Firm will consider buyouts of private companies, acquisitions of divisions or subsidiaries of public companies, shareholder liquidity needs, partnering with entrepreneurs for growth opportunities, and special situations. 2007) (citations omitted). $46H$DrGHi`0I"DE$"J(aH! Otherwise you cannot get paid." Ashmore for Wilson v. Dodds, 262 F. Supp. Wellspring Capital Management Acquires Paragon Films Id. 1985). Accordingly, Wellspring reinforces the importance of disinterested governance and arms length dealing in connection with the restructuring process. 85]. View Videos. Pentec Health Inc. Acquired by Wellspring Capital Management Wellspring Capital Acquires Caring Brands International Since its founding in 1995, Wellspring has raised over $4.5 billion of initial capital commitments through six private equity funds. Shoe designer and creative Salehe Bembury takes us on a journey from his childhood growing up in Manhattan, to an invaluable degree in industrial design, to working with some of the biggest names in fashionbefore breaking off to make his own name. We are motivated and incentivised to succeed. 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. This is despite the fact that 57% of Californians and 37% of California Democrats do not want President Joe Biden to run, according to a poll from the Berkeley Institute of Governmental Studies. Tex. 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. Tenn. 1991); 11 U.S.C. 962 0 obj
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to negotiate for release or indemnification, with the defendants arguing that such releases may have saved the post-restructuring company the expense of indemnifying the D&O Defendants in subsequent litigation. Twitter Revenue, Earnings Fell About 40% in December, WSJ Says, John Malone andCharter Directors Agree to $87.5 Million Settlement, China E-Commerce Giant JD Set for $1.4 Billion Discount Spree, Between Rounds of Golf, Trumps Searching for the Perfect DeSantis Diss, Your Saturday UK Briefing: Sunak Chalks Up a Win as the Budget Looms, Harrods Shrugs Off Recession Fears as Rich Get Richer, FT Says, Wealthy NYC Family Feuds Over $258 Million Madison Avenue Sale, Tom Sizemore, 'Saving Private Ryan' Actor, Dies at 61, The Exhibit Reality TV Show PittingArtist Against ArtistIs No Masterpiece. Wellspring Capital Management has acquired 38 organizations. July 5, 2017).
Description. 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. By teaming up with strong management, Wellspring is able to unlock underlying value and The legal team representing former President Donald Trump formally has requested a six-month delay in the civil case filed against him by New York Attorney General Letitia James. Why is this public record being published online? Note: This site is for informational purposes only. at 385. Wellspring Capital Management, LLC; Wellspring Cap. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. REGISTRATION STATUS . You can review interesting Flipbooks on my site. Wellspring Capital Management is an American private equity firm focused on leveraged buyout investments in middle-market companies across a range of industries. This preference is a result of the Firms differentiated and conservative approach to leverage, in addition to a transparent oversight model, which is driven by our small group of senior professionals and absence of bureaucracy. . The plaintiff, however, asserts that federal conflict of law principles should govern what state's law applies in this case, because "[a] claim under 544(b) incorporates 'applicable law,' but it is a claim under federal law with a substantive federal law recovery scheme." New York law and South Carolina law differed as to whether such a transfer was permitted. (Wellspring). Id. The amended complaint contains no allegations that either Ellett, with respect to the first cause of action, or SportCo, with respect to the second cause of action, was insolvent at the time of the distributions or became, at the time of the transfers, insolvent as a result of the transfers. In Fall 2018, SportCo Holdings, Inc. (SportCo) was facing severe financial distress. [Amended Complaint, 37, 40]. Ellett achieved high sales and revenues and had significant operations until sometime in 2016, when its profits began to decrease. For purposes of South Carolina law, the parties disagree whether Prospect was a preexisting creditor or a subsequent creditor. IAPD - Investment Adviser Public Disclosure - Homepage Wellspring CEO Bill Dawson is taking a leave of absence, the firm said Tuesday Last week a shocking lawsuit was filed against his son Christopher It claims he drugged and violently raped and. Ellett achieved high sales and revenues and had significant operations until sometime in 2016, when its profits began to decrease. 1984) for the proposition that under New York law, opinions are actionable in a negligence context. [Amended Complaint, 51]. In June 2019, SportCo and its subsidiaries (the "Debtors") filed chapter 11 bankruptcy cases in the United States Bankruptcy Court for the District of Delaware. WELLSPRING CAPITAL MANAGEMENT ( CRD # 135455/SEC#:801-64341 ) WELLSPRING CAPITAL MANAGEMENT, WELLSPRING CAPITAL MANAGEMENT, INC. View latest Form ADV filed Part 2 Brochures. Nor is it necessary for the Court to decide whether New York or South Carolina law applies under South Carolina's choice of law principles. Designed By BM Designs.
Wellspring has the flexibility to complete transactions ranging from $100 million to as much as $1.5 billion in total value in a wide range of industries. The middle-market private equity firm invests in companies with strong business . The District Court in Ashmore for Wilson stated: The parties' arguments regarding what law applies to the plaintiff's fraudulent conveyance claims present some complicated and novel questions; however, it is not necessary for the Court to decide whether the defendants are third party beneficiaries of the Loan Agreements or the Amendments. (quoting Bell Atl. Bill Dawson is taking time off from his $2.2 billion private equity firm Wellspring Capital Management, which will investigate the claims of Dawson's threats, according to an internal memo. They are not actionable. The 2011 Wellspring Capital Partners V LP was fully invested at $1.2 billion and has generated positive returns for its investors to-date. Wellspring Capital Management is an American private equity firm focused on leveraged buyout investments in middle-market companies across a range of industries. The defendants asserted common arguments in support of dismissal, but all arguments made in support of dismissal were not asserted by each defendant. In April 2018, Prospect agreed to defer two quarters of cash interest payments. 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. New York law prohibits both actual and constructive fraudulent conveyances. These facts, as recited in the complaint, are taken as true for purposes of the motions to dismiss. It is not unusual for an entity facing distress to engage with their stakeholders and to negotiate any number of transaction alternatives and terms. The adviser's REGISTRATION status is listed below. F. Hewitt Grant asserted the lack of a triggering creditor due to Prospect Capital Corporation's knowing participation in the transfers and failure to state a claim under New York law due to lack of insolvency and under South Carolina law due to failure to plead actual fraud. Defendant Bernard Ziomek is in default in this matter. Hiding negative complaints is only a Band-Aid. Another email stated, in part: "Gotta get your interest? Wellsprings facts, as alleged, are fairly straightforward. Accordingly, SportCo began negotiations with certain of its lenders around a potential restructuring transaction. Wellspring Capital Management Portfolio Investments, Wellspring Capital [4] Wellspring completed fundraising on its sixth fund in 2018 with $1.45 billion of investor commitments as a successor to its $1.2 billion 2011 Fund V.[3], Wellspring focuses on the packaging, healthcare, niche manufacturing and distribution sectors.[5][6]. 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. I Shall [Not] Be Released: Wellspring, Director Releases, and the Duty Trump legal team requests six-month delay in New York civil lawsuit California Weighs $360,000 in Reparations to Eligible Black Residents. Wellspring Capital Management Company Profile | Management and Wellspring buys PE-backed Center for Diagnostic Imaging articles a month for anyone to read, even non-subscribers! Wellspring Capital Management | LinkedIn 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. PDF Wellspring CEO Takes Leave After Son Accused of Rape in Lawsuit At the conclusion of the hearing, the Court took the motions under advisement. Will Others Follow? Wellspring Capital, Mr. Carles, and Mr. Johnson were not insiders of AcuSport, and the amended complaint does not allege that they had any special knowledge or information about AcuSport that was not available to the public. The defendants filed separate motions. The Firm also has a long history of collaboration with entrepreneurs and closely held businesses to achieve outsized growth, with a large percentage of our portfolio companies being transitioned from founder ownership. Broker-Dealers Business & Commercial Litigation Business Restructuring California Consumer Privacy Act Capital Markets Capital Solutions & Private Credit Charitable Foundations China Life Sciences Committee on Foreign Investment in the United States (CFIUS) Consumer Protection and Advertising Law Corporate & Securities Litigation This matter is before the Court on motions to dismiss filed by the defendants Wellspring Capital Management, LLC ("Wellspring Capital"), Wellspring Capital Partners IV, L.P. ("Wellspring Capital Partners"), WCM Genpar IV, L.P., WCM Genpar IV GP, LLC (collectively, the "Wellspring Defendants") [Docket No. These emails may be a lot of things, but negligent misrepresentations they are not. 2008) (citing Southmark Corp. v. Crescent Heights VI, Inc. (In re Southmark Corp.), 95 F.3d 53, 53, n.7 (5th Cir. However, the garage actually had only 402 parking spaces. New York law requires insolvency at the time of the transfer, and South Carolina law requires insolvency both at the time of the transfer, and at the time the creditor seeks to collect the debt. Marlow v. Oakland Gin Co. (In re The Julien Co.), 128 B.R. 2018) (distinguishing cases where the courts dismissed negligent misrepresentation claims based on "puffery" or founded solely on speculative statements regarding future profits as a result of proposed transactions, and finding that the misrepresentations at issue were actionable because they involved present facts). N.D.N.Y. The parties disagree on what law should applyfederal or state, and further if state law applies, New York or South Carolina. Wellspring Capital and the D&O Defendants grossly and recklessly mismanaged the business and carried out their respective roles in a manner that was devoid of reasonable inquiry and diligence in dereliction of their fiduciary duties to Prospect as a creditor of the increasingly insolvent enterprise. PDF In the United States Bankruptcy Court for The District of Delaware [Amended Complaint, 31]. However, whether a fraudulent conveyance action is characterized as a tort action is unsettled. 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. The plaintiff, Ronald J. Friedman, the trustee for the SportCo Creditors' Liquidation Trust, filed an omnibus response to the motions to dismiss [Docket No. January 12, 2022
It identifies undervalued companies whose share price does not properly reflect the true value of the business. In early 2018, Wellspring Capital notified SportCo's secured lenders that SportCo would default on a $4.7 million interest payment due in the second quarter of 2018. 3d 473, 506 (S.D.N.Y. (quoting Edwards v. City of Goldsboro, 178 F.3d 231, 244 (4th Cir. When typing in this field, a list of search results will appear and be automatically updated as you type. Since its founding in 1995, Wellspring has raised over $4.5 billion of initial capital commitments through six private equity funds. Musk Made a Mess at Twitter. %PDF-1.5
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Wellspring Capital Acquires SupplyOne | Markets Insider pursue new growth opportunities through strategic initiatives, operating improvements and add-on acquisitions. The firm, which is based in New York City, was founded in 1995 by Martin Davis and Greg Feldman. Haynsworth Sinkler Boyd, P.A. See Scheidelman v. Henderson (In re Henderson), 423 B.R. 1988) (adopting rule from Klaxon Co. v. Stentor Electric Manufacturing Co., 313 U.S. 487 (1941) stating that a federal court sitting in diversity should apply the choice of law rules of the state in which it sits). If you want your business to survive, you need to understand your-self. Your livelihoodand your sanitydepend . Wellspring Capital Management, founded in 1995, is a leading middle-market private equity firm that manages more than $3 billion of private equity capital. 101 (32). A former Wellspring Capital Management employee filed a lawsuit against the son of Wellspring chief executive Bill Dawson, alleging that he raped her and that Bill Dawson threatened to. Phone: 650 729-8626. Mr. Friedman was substituted as the plaintiff on January 10, 2020. Frustrated stakeholders can be further inclined, and incentivized, to view all corporate decisions with an eye towards litigation first through a 20/20 hindsight lens. 2016) (citing numerous cases, recognizing disagreement among courts regarding whether fraudulent conveyance action is a tort action); MainStreet Bank v. Nat'l Excavating Corp., 791 F. Supp. 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 [. 20-50554, 2021 WL 4823513 (Bankr.