'Ov}b0. Mr. Friedman filed an amended complaint the same day. 1999)). Angel, Fund of Funds, Venture Capital), This describes the stage of investments made by this organization (e.g. 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. 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 Acquires Cadence Petroleum Group The choice of law provision in the Loan Agreements states: In October 2017, Wellspring Capital was contemplating a purchase of AcuSport, a competitor, by Ellett, for $14.8 million. The firm, which is based in New York City, was founded in 1995 by Martin Davis and Greg Feldman. Since its founding in 1995, Wellspring has raised over $4 billion of initial capital commitments through six private equity funds. Wellspring Capital Management Fund Manager Website www.wellspringcapital.com Fund Category Private Equity Close Date 0000-00-00 Fund Family Wellspring Capital Partners Native Currency USD Fund Manager's Location 605 Third Avenue 44th Floor New York, NY 10158 United States +1 (212) 000-0000 Fund Domiciles Canada Specifically, Mr. Carles and Mr. Johnson represented to Prospect that a purchase of AcuSport would result in: (1) Debtors' capturing 20 to 30 percent of AcuSport sales; (2) Acquisition of $14 million worth of AcuSport's inventory at a significant discount; and (3) Realization of an immediate $7 million profit from the sale of the inventory acquired in the purchase. PLEASE NOTE: A verification email will be sent to your address before you can access your trial. We believe that this breadth and depth of experience enables the team to efficiently evaluate and complete acquisition opportunities across a broad range of industries. Id. Finally, one place to get all the court documents we need. Prior results do not guarantee a similar outcome. As part of the debt management process, it said it would close 375 of its 1,300 stores. The parties disagree on what law should applyfederal or state, and further if state law applies, New York or South Carolina. 91], F. Hewitt Grant [Docket No. This Supreme Court Case Could Redefine Crime, YellowstoneBackers Wanted to Cash OutThen the Streaming Bubble Burst, How Countries Leading on Early Years of Child Care Get It Right, Female Execs Are Exhausted, Frustrated and Heading for the Exits, No Major Offer Expected on Childcare in UK Budget, Biden Gives Medal of Honor to Trailblazing Special Forces Member, Climate Change Is Launching a MutantSeed Space Race, UK Braces for Rare Weather Event That Risks Late-Winter Freeze, This Former Factory Is Now New Taipeis Edgiest Project, What Do You Want to See in a Covid Memorial? You can review interesting Flipbooks on my site. Please Update this case to get latest docket information. 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 portfolio manager is also a co-investor in the strategy. Since its founding in 1995, Wellspring has raised over $4.0 billion of initial capital commitments through . We are motivated and incentivised to succeed. SportCos negotiations were led by a SportCo director, who was also the managing partner of Wellspring Capital, SportCos equity sponsor. 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. 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. R. Civ. Tenn. 1991); 11 U.S.C. Try our Advanced Search for more refined results. hXO8WtVH,~W"I/ {;N7'0HAA0%`Ih5L!p! PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. The court stated: See Credit Alliance Corp. v. Arthur Anderson & Co., 65 N.Y.2d 536 (NY App. This is the best way to manage and repair your business reputation. Pentec Health Inc. Acquired by Wellspring Capital Management 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. Id. [Amended Complaint, 54]. Industry: Investment & Asset Management. 91], Andrew Kupchik [Docket No. Wellspring Capital Management is a leading private equity firm headquartered in New York. 20-50554, 2021 WL 4823513 (Bankr. Litigation. Wellspring Capital Management Portfolio Investments, Wellspring Capital It had previously received notification, in early 2018, that the Borrowers would default on their obligation under the Loan Agreements and the Amendments in the second quarter of 2018. The emails, often using colorful language and harassing tones, essentially represent to Prospect that if the AcuSport transaction is not completed, Prospect will not get paid on its obligations. Mar 19, 2019 New York private equity firm Wellspring Capital Management said Monday it has acquired Center for Diagnostic Imaging, a Minneapolis-based operator of MRI and CT scanners that. Because the Court dismisses the complaint as to all other defendants, the Court sua sponte dismisses the causes of action against Mr. Ziomek as well. It identifies undervalued companies whose share price does not properly reflect the true value of the business. The Wellspring Defendants asserted all of these arguments and also asserted failure to state a claim under section 550 against certain defendants. Fund VI brings the firm's assets under management to more than $4.4 billion. [Amended Complaint, 49]. The defendants filed separate motions. Ripoff Report | scalp-med complaints, reviews, scams, lawsuits and Wellspring has earned the reputation as a trusted, reliable partner and is often the preferred partner of a portfolio companys senior management team. See Sheehan v. Saoud, 650 Fed. . Use tab to navigate through the menu items. The 2011 Wellspring Capital Partners V LP was fully invested at $1.2 billion and has generated positive returns for its investors to-date. to hinder, delay, or defraud either present or future creditors." Investment Philosophy; Target Investments; Portfolio Gymboree - Wikipedia 24. Your livelihoodand your sanitydepend . 8h`6$67Xn@,`& 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." 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. Trump legal team requests six-month delay in New York civil lawsuit And the best part of all, documents in their CrowdSourced Library are FREE. Wellspring Capital Exits Strategic Investment in Great Lakes Caring Type: Company - Private. Wellspring has one of the best track records in middle-market private equity; its people, capital and reputation bring certainty to transactions. The court considered whether inaccurate credit ratings can form the basis for a negligent misrepresentation claim. On May 3, 2018, SportCo agreed to acquire AcuSport's assets in bankruptcy for $7 million. Wellspring Capital formed SportCo Holdings, Inc. ("SportCo") to serve as a holding company for United Sporting Company, Inc. ("United Sporting"), Ellett's direct parent; Ellett; and its subsidiaries. 2d 317 (S.D.N.Y. Wellsprings objective is to bring partnership, experience and value creation to each investment. Description. 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. It featured lower-priced clothing and was Gymboree's direct competitor for The Children's Place and Old Navy.. In Wellsprings view, the extent to which releases might have benefitted SportCo (as opposed to benefiting the directors alone) was at least in part a question of fact that could not be resolved on a motion to dismiss. Wellspring Capital Management is a mega-sized private equity firm that focused on a variety of transaction situations. . The firm, which is based in New York City, was founded in 1995 by Martin Davis and Greg Feldman. Lawsuit: Wellspring CEO Told - Institutional Investor 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. 2007) (citations omitted). Ellett achieved high sales and revenues and had significant operations until sometime in 2016, when its profits began to decrease. A social media content creator signed an agreement with Birchbox in May of 2022 and hadn't been paid the $2,500 due as of Jan. 24, despite several emails to the company. PLEASE SEE THIS LINK FOR FULL DISCLAIMER: https://www.wellspringcapital.co.uk/disclaimer. 101 (32). The third cause of action asserts that those parties "made numerous representations to Prospect concerning the AcuSport Purchase, including that the purchase would allow the Debtors to acquire $14 million worth of AcuSport inventory at a substantial discount; that it would result in the Debtors' immediate realization of a $7 million profit on the sale of the AcuSport inventory so purchased; and that it would result in the Debtors' capturing 20% to 30% of AcuSport sales." An action with multiple causes of action was commenced by Prospect Capital Corporation in South Carolina state court and was removed to this court on September 6, 2019. Please see our Privacy Policy. 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.