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Insurers Lose Restitution Defense Bid In $120M Coverage Row
Law360 (March 1, 2021, 5:33 PM EST) Starr Indemnity & Liability Co. and other insurers can t get out of covering an investment group s $120 million settlement in litigation over a buyout of retailer Nine West just because the deal may represent payback for ill-gotten gains, a Delaware state court judge has ruled.
Superior Court Judge Abigail M. LeGrow on Friday gave a partial win to Sycamore Partners Management LP and its sister firms, finding the excess insurers couldn t invoke the so-called uninsurability defense to get out of covering the Delaware private equity firms in a settlement with the bankruptcy trustees for the women s shoe retailer, according to the.
In re Nine West LBO Sec. Litig., No. 20 MD. 2941 (S.D.N.Y. Dec. 4, 2020)
Summary
In 2014, Sycamore Partners Management LP (Sycamore) acquired The Jones Group (Jones) in a leveraged buyout. The merger provided for five different components: (1) Jones would merge with a Sycamore affiliate and become “Nine West Holdings” (Nine West); (2) Sycamore would contribute at least US$395 million in equity to Nine West; (3) Nine West would increase its debt from US$1 billion to US$1.2 billion; (4) Jones shareholders would receive US$15 per share; and (5) two high-end brands, along with another business unit, would be sold to other Sycamore affiliates for less than fair market value.
Rapala VMC Corporation Stock Exchange ReleaseFebruary 12, 2021 at 10:00 p.m.
ANNOUNCEMENT OF A CHANGE IN SHAREHOLDING ACCORDING TO CHAPTER 9, SECTION 10 OF .
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In 2019, the U.S. Court of Appeals for the Second Circuit made headlines when it ruled that creditors state law fraudulent transfer claims arising from the 2007 leveraged buyout ( LBO ) of Tribune Co. ( Tribune ) were preempted by the safe harbor for certain securities, commodity or forward contract payments set forth in section 546(e) of the Bankruptcy Code. In
In re Tribune Co. Fraudulent Conveyance Litig., 946 F.3d 66 (2d Cir. 2019),
petition for cert. filed, No. 20-8-07102020, 2020 WL 3891501 (U.S. July 6, 2020) (
Tribune 2 ), the Second Circuit concluded that a debtor may itself qualify as a financial institution covered by the safe harbor, and thus avoid the implications of the U.S. Supreme Court s decision in
Review of Target Board LBO Practices May Be Warranted Based on the Nine West Decision-But We Believe the Decision s Impact Has Been Overstated lexology.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from lexology.com Daily Mail and Mail on Sunday newspapers.