Va. June 8, 2011) (acknowledging that Maryland law is not clear regarding whether a fraudulent conveyance action sounds in tort, but concluding that "given that the gravamen of the fraudulent conveyance claim is the wrongfulness of the conveyance and the injury to the creditor, rather than balancing equities or fairness, it is appropriate to conclude that fraudulent conveyance claims sound in tort. Todd Boehly filed a joinder to the Wellspring Defendants' motion to dismiss. These are high quality companies, essential to the national, regional, or global economy but whose fundamental qualities are underappreciated and undervalued by the market. It is not unusual for an entity facing distress to engage with their stakeholders and to negotiate any number of transaction alternatives and terms. Over the past 20 years, Wellspring has invested in over 35 platform investments across . Password (at least 8 characters required). pursue new growth opportunities through strategic initiatives, operating improvements and add-on acquisitions. The Court also notes that, setting the other factors aside, given the extreme nature of the urgent tone of these emails, and the highly sophisticated status of Prospect, Prospect satisfying the justifiable reliance element of a negligent misrepresentation claim is questionable, at best. Private equity firm Wellspring Capital Management has acquired Caring Brands International, parent company of home health and hospice franchise company Interim Healthcare, for an undisclosed amount. %%EOF *aUQBT&1#J$8Q)=WE9M'v1s_)GG+.kbN;yELi.UD1N{f'u$y`'GCJfS;4yXwbW${%^tcxG2}+/P@U `a$b6? 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 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. Angel, Fund of Funds, Venture Capital), This describes the stage of investments made by this organization (e.g. In 2010, Bain Capital acquired the company for US$1.8 billion. The Debtors in the bankruptcy cases, pending in the District of Delaware, are SportCo Holdings, Inc.; Ellett Brothers, LLC; United Sporting Company, Inc.; Bonitz Brothers, Inc.; Evans Sports, Inc.; Jerry's Sports, Inc.; Outdoor Sports Headquarters, Inc.; Quality Boxes, Inc.; and Simmons Guns Specialties, Inc. 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. Finally, one place to get all the court documents we need. with actual intent . . Wellspring has one of the best track records in middle-market private equity; its people, capital and reputation bring certainty to transactions. 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. David R. Duncan US Bankruptcy Judge District of South Carolina. E-mail: sandra@wellspring-cap.com; Videos. In this process, SportCo initially exchanged a term sheet with certain of its lenders in early November 2018 and allegedly reached an agreement in principle in late December 2018. On December 31, 2018, the Borrowers defaulted on their obligations under the Loan Agreements and the Amendments. From reading the Financial Times at school to managing his first portfolio at just 18, he has built Wellspring Capital into a nationwide wealth management boutique. & Loan Ass'n of New York City, the plaintiff loaned funds to the defendant, secured by a mortgage on a parking garage. 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. 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. Alexander Carles' and Bradley Johnson's arguments are limited to the negligent misrepresentation cause of action, the only cause of action asserted against them. Litigation. They were not statements of presently existing fact. Reputation Management. Make your practice more effective and efficient with Casetexts legal research suite. We have interesting videos for you to watch on my site. 3d 341, 357 (D.S.C. New York law and South Carolina law differed as to whether such a transfer was permitted. 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. A second amendment to the Loan Agreements (the "Second Amendment") was executed on September 30, 2014. Industry: Investment & Asset Management. Lawsuit: Wellspring CEO Told - Institutional Investor As a result, the defendants argue, it would be unjust for Prospect to now be able to avoid the distributions. Since its founding in 1995, Wellspring has raised over $4.5 billion of initial capital commitments through six private equity funds. In fact, the amended complaint states that the distributions at issue here were made in October 2012 and March 2013. Note: This site is for informational purposes only. 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." 2010); Saifullah v. Johnson, 948 F.2d 1282, at *1 (4th Cir. Certain state securities regulatory authorities have similar exemptions based on . Total number of employee profiles an organization has on Crunchbase, Total number of Crunchbase contacts associated with this organization, Descriptive keyword for an Organization (e.g. Wellspring Philanthropic: An Ocean of "Dark Money" on the Left In particular, the bankruptcy court held that the allegations failed to support a conclusion that the SportCo directors were somehow acting on an uninformed basis or that the rejection of the out-of-court restructuring was grossly negligent. Wellspring Capital Management is a middle-market private equity financing firm. Contribute to chinapedia/wikipedia.en development by creating an account on GitHub. 609, 614 (Bankr. Since its founding in 1995, Wellspring has raised over $4 billion of initial capital commitments through . The Company specializes in private companies buyouts, acquisitions of divisions and subsidiaries of public companies, and going . Why is this public record being published online? 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. The first and second causes of action are dismissed. Wellspring Capital Management - Investments, Portfolio & Company Exits Investment Philosophy; Target Investments; Portfolio WELLSPRING CAPITAL MANAGEMENT LIMITED is registered in England and Wales under Company Number 12429146, PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. 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 son of sexual assault. SportCo later filed a free fall bankruptcy and liquidatedallegedly causing substantial losses for unsecured creditors that would not have occurred had SportCo accepted that agreement in principle allegedly reached in December 2018. 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. Target Investments - Wellspring Capital If you do not agree with these terms, then do not use our website and/or services. Wellspring CEO takes leave after explosive rape allegations against his son Therefore, a finding that Prospect is a subsequent creditor would require dismissal of the first and second causes of action. "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."'" 541, 546 (Bankr. Id. Id. 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. The origins of Wellspring Philanthropic Fund are shrouded. The defendants argue that Prospect is a subsequent creditor, because it had knowledge of and approved of the distributions prior to them being completed. 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." 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. The District Court discussed the South Carolina Supreme Court's decision in Sheldon v. Blauvelt, 29 S.C. 453 (1888). 93], and Bradley Johnson [Docket No. 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). 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. Follow along as he lays out the blueprint for his career, and takes us all the way from his first sketch to his thriving personal brand, Spunge. We are motivated and incentivised to succeed. Wellspring Capital Partners VI Profile: Investments & Returns | PitchBook Friedman v. Wellspring Capital Mgmt. (In re Sportco Holdings) 544(b). S.D. 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. Wellspring Capital Management | LinkedIn When it comes to helping companies that show promise, Wellspring Capital Management is overflowing with support. The defendants' remaining arguments need not be addressed. In Ashmore for Wilson, the District Court considered the question of how a fraudulent conveyance claim should be characterized for conflict of law purposes. & Loan Ass'n v. Hirschfeld, 476 N.Y.S.2d 292 (N.Y. App. This article about a private equity or venture capital firm based in the United States is a stub. Wellspring Capital Lawsuit | PDF | Limited Partnership | Loans - Scribd 2022 Wellspring Capital Management Group LLC |. 101 (32). The firm's objective is to bring partnership, experience and value creation to each investment. 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 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. Many of the facts underlying the Wellspring decision are neither unique nor unusual. 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. Wall Street tycoon takes leave of absence after lawsuit claims his son

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