As private-equity backed portfolio companies work through the effects of the last several years of economic challenges, including continuing elevated interest rates, they may find themselves in need of covenant relief,...more
A recent decision by the Superior Court of the State of Delaware highlights a risk of potential exposure to liability for individuals affiliated with private equity firms who are presumed to be covered by a directors’ and...more
7/11/2019
/ Acquisition Finance ,
Board of Directors ,
Breach of Duty ,
But For Causation ,
Capacity Allocation ,
Capital Structures ,
Contract Terms ,
Corporate Executives ,
Corporate Restructuring ,
D&O Insurance ,
Debt ,
Denial of Insurance Coverage ,
Directors ,
Duty of Loyalty ,
Fiduciary Duty ,
Policy Exclusions ,
Popular ,
Portfolio Companies ,
Private Equity ,
Private Equity Firms ,
Repurchases ,
Risk Assessment ,
Risk Mitigation ,
Self-Dealing ,
Wrongful Acts
In an overlooked aspect of the recent New York Court of Appeals decision in Cortlandt St. Recovery Corp. v. Bonderman1, New York’s high court has allowed direct claims to move forward against two private equity firms for the...more
9/21/2018
/ Acquisition Finance ,
Alter Ego ,
Appeals ,
Bonds ,
Breach of Contract ,
Debt ,
Dismissals ,
Fraudulent Conveyance ,
Global Market ,
Indenture Trustee ,
Insolvency ,
NY Appellate Court ,
Piercing the Corporate Veil ,
Portfolio Companies ,
Private Equity ,
Private Equity Firms ,
Reversal
A recent Delaware bankruptcy court decision may potentially place at risk an equity sponsor’s ability to retain proceeds from the sale of a portfolio company whose performance later deteriorates, where the selling sponsor...more
Private equity sponsors should be aware of two recent court decisions. One involves fiduciary duties under state law that may be owing to a limited liability company borrower by its managers, in the context of receivables...more
Two recent court decisions may result in a broadening of the range of options available to an equity sponsor in respect of an insolvent portfolio company. The first decision may provide increased flexibility in structuring...more
1/18/2016
/ Absolute Priority Rule ,
Acquisition Finance ,
Board of Directors ,
Breach of Duty ,
Business Judgment Rule ,
Chapter 11 ,
Creditors ,
Debtors ,
Fiduciary Duty ,
Insolvency ,
Portfolio Companies ,
Private Equity