Pentec Health Inc. Acquired by Wellspring Capital Management Try our Advanced Search for more refined results. R. Civ. 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. 91], Andrew Kupchik [Docket No. 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. 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. 2d 520, 529 n.14 (E.D. On May 3, 2018, SportCo agreed to acquire AcuSport's assets in bankruptcy for $7 million. In King County, the court considered suits by investors seeking to recover losses incurred after the collapse of a structured investment vehicle. Founded in 1995, Wellspring invests anywhere . Wellspring Capital Management - Crunchbase Wellspring Capital Management LLC Chief Executive Officer Bill Dawson has taken a leave of absence, days after a former employee alleged in a lawsuit that he threatened her for accusing his. "[F]or purposes of Rule 12(b)(6), '[the court is] not required to accept as true the legal conclusions set forth in a plaintiff's complaint.'" Wellspring Capital Management, founded in 1995, is a leading middle-market private equity firm that manages more than $3 billion of private equity capital. . The case status is Pending - Other Pending. 22-2003, 2023 WL 1098189 (3d Cir. The plaintiff's first and second causes of action both assert claims for fraudulent conveyances pursuant to 544(b) and S.C. Code 27-23-10. A litigation trust formed through the SportCo bankruptcy then sued, among others, SportCos former directors and its equity sponsor. Wellspring Capital Management Company Profile | Management and Haynsworth Sinkler Boyd, P.A. It identifies undervalued companies whose share price does not properly reflect the true value of the business. 90], Alexander E. Carles [Docket No. Many of the facts underlying the Wellspring decision are neither unique nor unusual. Wellspring Capital Management is a leading private equity firm headquartered in New York. From October 2017 to April 2018, Mr. Carles and Mr. Johnson sent numerous emails to representatives of Prospect, attempting to induce Prospect to agree to forego exercising its rights in the event of a default. The defendants argue that as a subsequent creditor, Prospect is required to plead actual fraud, and the amended complaint fails to do so. In Wellspring, the Delaware bankruptcy court held that an alleged duty of loyalty breach could survive a motion to dismiss where: Bear in mind that alleged is the operative word here. Federal Rule of Bankruptcy Procedure 7012(b) provides that Federal Rule of Civil Procedure 12(b) applies in adversary proceedings. ~p03ngx1Ai63*oP 4TP3Nt'xn0R8tJ'a7D2P6ILky6L;0;0SUNrtd t ";Qb[K-Ii 1g%\i) IZ3uAH0J40v0xt0v40Xt8 y CJ3t@y`$21kL The 2011 Wellspring Capital Partners V LP was fully invested at $1.2 billion and has generated positive returns for its investors to-date. (Compl. Additionally, the plaintiff argues that the third element of New York's third-party beneficiary test is not met because there is no express intent in the Loan Agreements or the Amendments to compensate the defendants in the event the distributions were not paid and in fact, the Loan Agreement indicates the opposite by virtue of the inurement clause found in Section 13.1. Public Records Policy. EFFECTIVE DATE; SEC: Terminated: 3/2/2007: Will His AI Plans Be Any Different? Practices: Industry: Investment & Asset Management. 541, 546 (Bankr. "To survive a motion to dismiss, 'a complaint must contain sufficient factual matter, accepted as true, to "state a claim to relief that is plausible on its face."'" PLEASE NOTE: A verification email will be sent to your address before you can access your trial. Ellett achieved high sales and revenues and had significant operations until sometime in 2016, when its profits began to decrease. Wellspring Capital Lawsuit | PDF | Limited Partnership | Loans - Scribd Type: Company - Private. at 382. The first and second causes of action are dismissed. In the legal profession, information is the key to success. Despite that agreement in principle, it was alleged in relevant part that: Unable to agree on the release and indemnification issue, SportCos out-of-court restructuring failed, and SportCo defaulted on its funded debt shortly thereafter. These all relate to a proposed business transactionthe purchase by Ellett of AcuSport. In considering what choice of law provisions to apply, the Fourth Circuit stated: The Court notes that there is a specific fraudulent conveyance section of the Bankruptcy Code. Wellspring Capital Management Portfolio Investments, Wellspring Capital Therefore, the plaintiff argues that he is only required to establish constructive fraud. Under either New York or South Carolina law, the plaintiff's third cause of action for negligent misrepresentation fails to state a claim for which relief can be granted. Ellett achieved high sales and revenues and had significant operations until sometime in 2016, when its profits began to decrease. Tenn. 1991); 11 U.S.C. [Amended Complaint, 51]. I Shall [Not] Be Released: Wellspring, Director Releases, and the Duty Prior results do not guarantee a similar outcome. UNITED STATES BANKRUPTCY COURT DISTRICT OF SOUTH CAROLINA. It is notable that the first and second causes of action are based only on South Carolina law; however, because the parties disagree as to whether South Carolina or New York law should apply, the Court will analyze the first and second causes of action under both. (Wellspring). [Amended Complaint, 32]. Id. The Court does not have to decide whether Prospect is a preexisting or a subsequent creditor. You have to know whats happening with clients, competitors, practice areas, and industries. D. Del. 112]. The defendants filed separate motions. McDermott Will & Emery LLP > San Francisco > United States | The Legal wikipedia.en/Vatterott_College.md at main chinapedia/wikipedia.en Andrew Kupchik argued dismissal was necessary due to Prospect's ratification and/or consent to the distributions, due to failure to state a claim under New York law because of lack of insolvency and failure to state a claim under South Carolina law due to failure to plead actual fraud, due to the expiration of the statute of limitations on the fraudulent conveyance claims, and due to failure to plead the existence of a triggering unsecured creditor. your most valuable capital, your ultimate resource. The. Wellspring Capital Management prevailed in the sponsor-driven process for Center for Diagnostic Imaging, the country's largest private . Id. CDI's smaller Atlanta peer said to weigh sale in '18. Section 544(b) states: The defendants' motions assert numerous arguments in support of the assertion that the Court must dismiss the plaintiff's causes of action. 'Ov}b0. Wellspring Capital - Middle Market Private Equity Tex. By teaming up with strong management, Wellspring is able to unlock underlying value and pursue new growth opportunities through strategic initiatives, operating improvements and add-on acquisitions. Particularly where negotiations may involve releases, indemnification, or similar provisions, be advised that the ever-present tendency for counterparties to exercise 20/20 hindsight is fully in effect. Id. . The Firm takes pride in its ability to marshal its resources quickly and focus on the issues that matter, resulting in speed and certainty during the acquisition process. hXO8WtVH,~W"I/ {;N7'0HAA0%`Ih5L!p! Id. Wellspring Capital Management, founded in 1995, is a middle-market private equity firm that has approximately $2 billion of private equity capital under management. *aUQBT&1#J$8Q)=WE9M'v1s_)GG+.kbN;yELi.UD1N{f'u$y`'GCJfS;4yXwbW${%^tcxG2}+/P@U `a$b6? Phone: 650 729-8626. 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. It identifies undervalued companies whose share price does not properly reflect the true value of the business. The firm's objective is to bring partnership, experience and value creation to each investment. And the best part of all, documents in their CrowdSourced Library are FREE. About Wellspring Capital Management Wellspring Capital Management is a leading private equity firm headquartered in New York. Musk Made a Mess at Twitter. In re Merritt Dredging Co., Inc., 839 F.2d 203, 205 (4th Cir. v. Trimble Navigation Ltd., 484 F.3d 700, 705 (4th Cir. 70% of dealmakers say that investment managers share culpability for [Amended Complaint, 93]. July 5, 2017). The 2011 Wellspring Capital Partners V LP was fully invested at $1.2 billion and has generated positive returns for its investors to-date. Law360 may contact you in your professional capacity with information about our other products, services and events that we believe may be of interest.Youll be able to update your communication preferences via the unsubscribe link provided within our communications.We take your privacy seriously. 2d 317 (S.D.N.Y. The basic complaint is that Wellspring directors put self-interests above those of the company and its creditors. Adversary Proceeding No. As discussed in Cyrus II, the Fourth Circuit has stated that a bankruptcy court should apply the choice of law rules of the state in which it sits. Cases involving other matters not classified elsewhere, 890, 1890, 1990, 2890, 2899, 2999, 3375, 3890, 3896, 3899, 3999, 4890, 4896, 4999, Wellspring Capital Management, LLC; Wellspring Cap v. Barry, III et al. On 05/20/2022 Wellspring Capital Management, LLC Wellspring Cap filed an Other lawsuit against Barry, III.This case was filed in U.S. Bankruptcy Courts, New York Southern Bankruptcy. Brought up in a family enjoying long-term success in real estate investment, Avrohom instead turned to the stock market. Whether youre building capital for your family, retirement or other life goals, we can help you with our high conviction and disciplined investment style. You can review interesting Flipbooks on my site. 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. King County, 863 F. Supp.2d at 318. Click here to login, 2023, Portfolio Media, Inc. | About | Contact Us | Legal Jobs | Advertise with Law360 | Careers at Law360 | Terms | Privacy Policy | Cookie Settings | Help | Site Map, Enter your details below and select your area(s) of interest to stay ahead of the curve and receive Law360's daily newsletters, Email (NOTE: Free email domains not supported). The February 20, 2018 stated, "You're [sic] economics are going down and the risk of chapter is going up. Please Update this case to get latest docket information. Over the past 20 years, Wellspring has invested in over 35 platform investments across . Wellspring buys PE-backed Center for Diagnostic Imaging Password (at least 8 characters required). Va. Mar. Wellspring Capital is a boutique discretionary management service with a portfolio positioned for high performance. A New York buyout baron has taken a leave of absence from his fund after an explosive lawsuit claimed last week that he threatened an ex-employee to keep quiet after she accused his son of raping her. Cancellation and Refund Policy, Privacy Policy, and 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. 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. 544 and 550 and S.C. Code 27-23-10; (2) avoidance and recovery of fraudulent transfers by SportCo against the Transferee Defendants pursuant to 11 U.S.C. When typing in this field, a list of search results will appear and be automatically updated as you type. 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." Wellspring, founded in 1995, has raised more than $4 billion of capital commitments through six private equity funds, according to its website. 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. Fund VI brings the firm's assets under management to more . To this end, Wellspring reinforces two key principles in particular: We encourage you to contact your Ropes & Gray team to discuss these matters more fully. Munich | Germany, History, Population, Oktoberfest, & Facts - Britannica Wellspring Capital Exits Strategic Investment in Great Lakes Caring Further, if the statement is solely a speculative prediction about some potential business venture or course of action being contemplated, it is not actionable. Judge opens door for bankruptcy blame suits - Axios W.D. At all times relevant to these claims, Wellspring Capital controlled (a) Wellspring Capital Partners at 385. Wellspring Capital Management LLC - Dun & Bradstreet This approach has historically delivered returns well above inflation Our clients The amended complaint also details numerous emails sent by Mr. Carles and Mr. Johnson to a representative of Prospect, urging Prospect to defer its right to payment in the event of a default. Full title:Ronald J. Friedman, as the trustee for the SportCo Creditors' Liquidation, Court:UNITED STATES BANKRUPTCY COURT DISTRICT OF SOUTH CAROLINA. The United States District Court for the District of South Carolina found in a fraudulent conveyance case, relying on Terry v. Walker, that South Carolina conflict of law rules should apply to determine the applicable substantive law. If you do not agree with these terms, then do not use our website and/or services. 101 (32). (quoting Bell Atl. The District Court stated that "[w]hether a fraudulent conveyance claim should be characterized as a tort action is uncertain and disputed among American jurisdictions." Law360 provides the intelligence you need to remain an expert and beat the competition. A customer lawsuit filed earlier this month against Sequoia, Paradigm, and Thoma Bravo, alleges these funds gave an "air of legitimacy" to FTX andvia their hundreds of millions in funding and. Ellett used $54,860,549.74 of the First Amendment loan proceeds to fund distributions to the Transferee Defendants. 2021 by wellspring capital Management. A former employee of Wellspring Capital Management filed a lawsuit in a New York Thursday alleging that the CEO's son, Christopher Dawson, drugged and repeatedly raped her one night in the. These tools have been used since the firm's inception in 1995 to generate consistent business improvement in its portfolios. Middle Market Private Equity. View Videos. Since its founding in 1995, Wellspring has raised over $4.0 billion of initial capital commitments through . By continuing to use this website, you agree to UniCourts General Disclaimer, Terms of Service, Jan. 30, 2023). Our tight-knit culture enables transparent oversight and a streamlined decision-making process. 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. 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. Fax: 877 376-7003. California Weighs $360,000 in Reparations to Eligible Black Residents. "); Terry v. Walker, 2006 WL 736861, at *5 (W.D. 2010); Saifullah v. Johnson, 948 F.2d 1282, at *1 (4th Cir. The adviser's REGISTRATION status is listed below. They are simply not statements of preexisting fact that were false when made. hbbd``b`u@IHEX 3X "2A`V @B'Hl``bdV8 2h PLEASE SEE THIS LINK FOR FULL DISCLAIMER: https://www.wellspringcapital.co.uk/disclaimer. Under certain conditions, section 548 allows the avoidance of a transfer made within two years of the date of the filing of the bankruptcy petition. e""8*&B Wellspring Capital Management Acquires Paragon Films Regardless, market participantsand equity sponsors in particularshould view Wellspring as an important reminder as to how both process and substance matter in restructuring negotiations. Wellspring Capital Management is a leading middle-market private equity firm headquartered in New York. San Francisco Bay Area, Silicon Valley), Operating Status of Organization e.g. Blackstone to Acquire Tradesmen International from Wellspring Capital
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