Id. For the reasons set forth below, under the law of either state, the plaintiff's first and second causes of action must be dismissed. 930 0 obj <>/Filter/FlateDecode/ID[<6781EE974E7B2C4D9274E8F359D28E60>]/Index[915 48]/Info 914 0 R/Length 80/Prev 600062/Root 916 0 R/Size 963/Type/XRef/W[1 2 1]>>stream The parties disagree on what law should applyfederal or state, and further if state law applies, New York or South Carolina. 2005)). Wellspring Capital Management is an American private equity firm focused on leveraged buyout investments in middle-market companies across a range of industries. The amended complaint further states, "As recently as 2015, Ellett was the fifth largest private company in South Carolina and the largest distributor of firearms in the United States, with annual revenues of $750 million, over 350 employees nationwide, and 175 employees in South Carolina." Wellspring Capital, through defendants Mr. Carles and Mr. Johnson, allegedly represented to Prospect that: (1) Ellett could purchase assets of AcuSport for $14.8 million; (2) the purchase would result in the Debtors' capturing 20% to 30% of AcuSport sales; (3) the Debtors could acquire $14 million of AcuSport inventory at a substantial discount; and (4) Ellett would immediately realize a $7 million profit on the sale of the inventory acquired in the purchase. *aUQBT&1#J$8Q)=WE9M'v1s_)GG+.kbN;yELi.UD1N{f'u$y`'GCJfS;4yXwbW${%^tcxG2}+/P@U `a$b6? July 5, 2017). Angel, Fund of Funds, Venture Capital), General contact email for the organization. Designed By, https://www.wellspringcapital.co.uk/disclaimer. Private equity firm Wellspring Capital Management LLC on Friday hit a slew of its insurers with a suit in New York state court alleging they must defend it against claims that it plundered . Since its founding in 1995, Wellspring has raised over $4 billion of initial capital commitments through . Id. [Amended Complaint, 54]. 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. Wellspring Capital Management is a middle-market private equity financing firm. The Partners of Wellspring constitute a long-tenured team, having worked together an average of 15 years over three funds. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. 962 0 obj <>stream Use tab to navigate through the menu items. (quoting Edwards v. City of Goldsboro, 178 F.3d 231, 244 (4th Cir. While property interests are defined by state law in the absence of a compelling federal interest, the Court would look to the Bankruptcy Code in making a determination of whether property is property of the estate under section 541. See Silvercreek Mgmt., Inc. v. Citigroup, Inc., 346 F. Supp. endstream endobj 916 0 obj <>/Metadata 258 0 R/Pages 913 0 R/StructTreeRoot 384 0 R/Type/Catalog>> endobj 917 0 obj <>/MediaBox[0 0 612 792]/Parent 913 0 R/Resources<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI]>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> endobj 918 0 obj <>stream This is the best way to manage and repair your business reputation. pursue new growth opportunities through strategic initiatives, operating improvements and add-on acquisitions. Active, Closed, This describes the type of investor this organization is (e.g. A constructive fraudulent conveyance exists under New York law if the conveyance was made without fair consideration and "(1) the transferor is insolvent or will be rendered insolvent by the transfer in question; (2) the transferor is engaged in or is about to engage in a business transaction for which its remaining property constitutes unreasonably small capital; or (3) the transferor believes that it will incur debt beyond its ability to pay." Relevant here: the plaintiff/litigation trust alleged that SportCos directors: Finally, the litigation trust also asserted a variety of other counts in its complaint related to other facts, circumstances, and actions that are not the subject of this Alert. 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. 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. ), Create custom alerts for specific article and case topics and, I took a free trial but didn't get a verification email. Accordingly, Wellspring did not find that the defendants in fact breached their duties, but rather held that the plaintiff, a litigation trust, had asserted a viable claim that could proceed to a trier of fact. 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. at 321. Amazon Pauses Construction on Second Headquarters in Virginia as It Cuts Jobs, Amazon Is Closing Its Cashierless Stores in NYC, San Francisco and Seattle, iPhone Maker Plans $700 Million India Plant in Shift From China, Stock Traders Are Ignoring Blaring Bond Alarms, S&P 500 Notches Best Week Since Late January: Markets Wrap. The plaintiff/litigation trust also asserted claims directly against Wellspring Capital under an aiding and abetting theoryi.e., asserting that Wellspring Capital itself aided and abetted the SportCo Boards alleged fiduciary duty breaches. . Corporate Advocacy Program. The Court addresses in this order only those arguments that clearly mandate dismissal. The District Court discussed the South Carolina Supreme Court's decision in Sheldon v. Blauvelt, 29 S.C. 453 (1888). %%EOF The amended complaint fails to allege insolvency at the time of the transfer, an essential element of a fraudulent conveyance claim under either New York or South Carolina law, and therefore fails to state a claim under 544(b). Innovative Custom Brands, Inc. v. Minor, 2016 WL 308805, at *2 (S.D.N.Y. 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. It is Bavaria's largest city and the third largest city in Germany (after Berlin and Hamburg). 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. 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. Wellspring Capital Management prevailed in the sponsor-driven process for Center for Diagnostic Imaging, the country's largest private . The defendants' motions to dismiss are granted. 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. The portfolio manager is also a co-investor in the strategy. GitHub export from English Wikipedia. On March 7, 2013, the Borrowers entered into a First Amendment to the Loan Agreements (the "First Amendment"), pursuant to which Prospect loaned the Borrowers an additional $60 million. The District Court in Ashmore for Wilson stated: The parties' arguments regarding what law applies to the plaintiff's fraudulent conveyance claims present some complicated and novel questions; however, it is not necessary for the Court to decide whether the defendants are third party beneficiaries of the Loan Agreements or the Amendments. Wellspring Capital Management is a leading private equity firm headquartered in New York. Your livelihoodand your sanitydepend . The amended complaint does not allege that either Ellett or SportCo was insolvent at the time of the transfer or became insolvent as a result of the transfer. About Wellspring Capital Management Wellspring Capital Management is a leading private equity firm headquartered in New York. Investment Philosophy; Target Investments; Portfolio 2021 by wellspring capital Management. at 385. Their most recent acquisition was Caring Brands International on Oct 25, 2021. 19-80071-DD (Bankr. However, the garage actually had only 402 parking spaces. Whether youre building capital for your family, retirement or other life goals, we can help you with our high conviction and disciplined investment style. Id. David R. Duncan US Bankruptcy Judge District of South Carolina. 8h`6$67Xn@,`& The first and second causes of action are dismissed. [Amended Complaint, 57]. Brought up in a family enjoying long-term success in real estate investment, Avrohom instead turned to the stock market. Mr. Friedman filed an amended complaint the same day. 90], Alexander E. Carles [Docket No. As part of the debt management process, it said it would close 375 of its 1,300 stores. Wellspring Capital Management is an American private equity firm focused on leveraged buyout investments in middle-market companies across a range of industries. Jan. 25, 2016) (alteration original). Posted By: Imright , 3/3/2023 9:31:52 PM. After all, corporate decisionmakers are often tasked with choosing a path where outcomes are at best uncertain. SaaS, Android, Cloud Computing, Medical Device), Where the organization is headquartered (e.g. These are high quality companies, essential to the national, regional, or global economy but whose fundamental qualities are underappreciated and undervalued by the market. Wellspring Capital Management Group LLC ("Wellspring"), a New York-based private equity firm, announced that on May 29, 2020, it closed the acquisition of Steele Solutions, Inc. ("SSI" or the "Company"), a value-add supplier into the industrial automation sector. In 2010, Bain Capital acquired the company for US$1.8 billion. The defendants filed separate motions. 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. In early 2018, Wellspring Capital notified SportCo's secured lenders that SportCo would default on a $4.7 million interest payment due in the second quarter of 2018. Since its founding in 1995, Wellspring has raised over $4.5 billion of initial capital commitments through six private equity funds. The firm, which is based in New York City, was founded in 1995 by Martin Davis and Greg Feldman. David Westin speaks with top names in finance about the week's biggest issues on Wall Street. If you do not agree with these terms, then do not use our website and/or services. Less than a year later, the liquidation trustee sued Wellspring and related parties, alleging breaches of fiduciary duty of care and loyalty. The Wellspring ruling was not appealed, nor has any trial occurred on this matter. Defendant Wellspring Capital Management LLC is a Delaware limited liability company with its principal place of business at 390 Park Avenue, New York, New York 10022. But Wellspring would arguably undermine the ability to negotiate for what are customary and, indeed, necessary protections for corporate decisionmakers in those same transactions, such as releases, indemnity, or exculpation. 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. In June 2017, Gymboree announced it was filing for Chapter 11 bankruptcy protection. 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. 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. However, whether a fraudulent conveyance action is characterized as a tort action is unsettled. The plaintiff, Ronald J. Friedman, the trustee for the SportCo Creditors' Liquidation Trust, filed an omnibus response to the motions to dismiss [Docket No. 987, 999-1000 (Bankr. 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. Financial terms of the transaction were not disclosed. Over the past 20 years, Wellspring has invested in over 35 platform investments across . Haynsworth Sinkler Boyd, P.A. Musk Made a Mess at Twitter. Federal Rule of Bankruptcy Procedure 7012(b). By teaming up with strong management, Wellspring is able to unlock underlying value and They are simply not statements of preexisting fact that were false when made. Litigation. Find More Contacts for Wellspring Capital Management, Edit Lists Featuring This Company Section, European Regulation Ushers In Global Future For Fundraising, Wellspring Capital Management Acquires Caring Brands International, Private Equity Firms with Investments in United States, Greater New York Area Investors with Funds Raised in 2017, Private Equity Firms with Investments in Asia. Wellsprings objective is to bring partnership, experience and value creation to each investment. Limited partners include leading pension funds, endowments, fund of funds and family offices from the U.S., Europe and Asia. Wellspring Capital Management, founded in 1995, is a middle-market private equity firm that has approximately $2 billion of private equity capital under management. UNITED STATES BANKRUPTCY COURT DISTRICT OF SOUTH CAROLINA. The principal and lead portfolio manager at Wellspring Capital is Avrohom Neumann. v. Holmes (In re Holmes), 610 B.R. [4] Wellspring completed fundraising on its sixth fund in 2018 with $1.45 billion of investor commitments as a successor to its $1.2 billion 2011 Fund V.[3], Wellspring focuses on the packaging, healthcare, niche manufacturing and distribution sectors.[5][6]. Share Your Design Ideas, New JerseysMurphy Defends $10 Billion Rainy Day Fund as States Economy Slows, This Week in Crypto: Ukraine War, Marathon Digital, FTX. 20-50554, 2021 WL 4823513 (Bankr. 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. The parties are in agreement that New York and South Carolina law regarding negligent misrepresentations are substantially similar and that as a result, the Court is not required to engage in a choice of law analysis as to the third cause of action. All rights reserved. & Loan Ass'n of New York City, the plaintiff loaned funds to the defendant, secured by a mortgage on a parking garage. The court must construe the allegations in the complaint in the light most favorable to the plaintiff. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. The firm, which is based in New York City, was founded in 1995 by Martin Davis and Greg Feldman. Wellspring has earned the reputation as a trusted, reliable partner and is often the preferred partner of a portfolio companys senior management team. 'Ov}b0. S.D. Ronald J. Friedman, as the trustee for the SportCo Creditors' Liquidation Trust, Plaintiff, v. Wellspring Capital Management, LLC, Wellspring Capital Partners IV, L.P., WCM Genpar IV, L.P., WCM Genpar IV GP, LLC, Alexander E. Carles, Bradley Johnson, F. Hewitt Grant, Charles E. Walker, Jr., Todd Boehly, Bernard Ziomek, and Andrew Kupchik, Defendants. 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 Tenn. 1991); 11 U.S.C. We see how Bembury is able to walk the line of business convention while taking his art to new heights, turning ordinary items into extraordinary footwear. The Wellspring Defendants asserted all of these arguments and also asserted failure to state a claim under section 550 against certain defendants. (Compl. If our offering sounds like something you would like to discuss, please get in touch on any of our contact details or the form below. View contacts for Wellspring Capital Management to access new leads and connect with decision-makers. 1996)). 0 SportCos negotiations were led by a SportCo director, who was also the managing partner of Wellspring Capital, SportCos equity sponsor. "[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.'" About Wellspring Capital Management Wellspring Capital Management, founded in 1995, is a leading middle-market private equity firm that manages more than $4.4 billion of private equity capital. Mr. Friedman was substituted as the plaintiff on January 10, 2020. We work with successful motivated individuals to help them achieve their investment and wealth management objectives. . 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. (Wellspring). v. Trimble Navigation Ltd., 484 F.3d 700, 705 (4th Cir. endstream endobj startxref 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. It identifies undervalued companies whose share price does not properly reflect the true value of the business. The firm prefers to invest through means of carveout, buyouts, add-on, public to private and growth capital. And the best part of all, documents in their CrowdSourced Library are FREE. 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. Their most recent investment was on Jan 1, 2020, when Steele Solutions raised Fax: 877 376-7003. 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. The middle-market private equity firm invests in companies with strong business . Most of them do not even contain any concrete information about the proposed AcuSport purchase or the likelihood of the Borrowers' default. Wellspring Capital Management, founded in 1995, is a middle-market private equity firm that has approximately $2 billion of private equity capital under management. 22-2003, 2023 WL 1098189 (3d Cir. All business will get complaints. Since its founding in 1995, Wellspring has raised over $4.0 billion of initial capital commitments through six private equity funds. 401(k)/403(b) Plan Litigation Risk Management, Analytics & Behavioral Science Consulting (R&G Insights Lab), Committee on Foreign Investment in the United States (CFIUS), E-Discovery, Discovery Strategies & Data Analytics, Executive Compensation & Employee Benefits, Government Enforcement / White Collar Criminal Defense, Life Sciences Licensing, Collaborations & Joint Ventures, The Music Stops on the Texas Two-Step: Third Circuit Dismisses LTL Bankruptcy Case. Therefore, the plaintiff argues that he is only required to establish constructive fraud. [Amended Complaint, 51]. D.S.C. Asia Pacific; EMEA; Latin America; UK Solicitors; UK Bar; United States REGISTRATION STATUS. Since its founding in 1995, Wellspring has raised over $4 billion of initial capital commitments through six private equity funds. York Capital Management Feb 2021 - Present2 years 1 month New York, New York, United States Wellspring Capital Management LLC 13 years 5 months Partner Dec 2016 - Dec 20204 years 1 month. The adviser's REGISTRATION status is listed below. 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. To summarize New York law, then, it appears that opinions can be actionable, but are not always actionable. Ellett Brothers LLC ("Ellett"), a South Carolina limited liability company, was a sporting goods distributor. Wellspring Capital manages an investment portfolio of between 10 and 15 international stocks. Accordingly, SportCo began negotiations with certain of its lenders around a potential restructuring transaction. 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. Lister v. NationsBank of Delaware, N.A., 329 S.C. 133, 143 (Ct. App. For the reasons set forth above, the first, second, and third causes of action set forth in the plaintiff's amended complaint fail to state claims for which relief can be granted. The assignment was executed in New York, but the personal property was located in South Carolina at the time the assignment was executed. Wellsprings investment professionals possess diverse and complementary backgrounds that combine valuable experience in private equity, restructuring, corporate finance, capital markets and corporate law. E-mail: sandra@wellspring-cap.com; Videos. 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. Wellspring Capital Management. 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 Munich, by far the largest city in southern Germany, lies about 30 miles (50 km) north of the edge of the Alps and along the Isar River, which flows through the middle . at *3 (quoting In re Sharp Int'l Corp., 403 F.3d 43, 53 (2d Cir. Since its founding in 1995, Wellspring has raised over $4 billion of initial capital commitments through six private equity funds. UniCourt uses cookies to improve your online experience, for more information please see our Privacy Policy. 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. Id. The plaintiff responds that the express terms of the choice of law provisions provide that the clause applies only to the parties to the Loan Agreements and the Amendments and that the defendants' indirect connection to the parties to the agreements, and the nature of their received benefit, a distribution, are not sufficient to render them third-party beneficiaries of the Loan Agreements and the Amendments. In an email obtained by . By Zachary Zagger (July 31, 2020, 9:56 PM EDT) -- Private equity firm Wellspring Capital Management LLC on Friday hit a slew of its insurers with a suit in New York state court alleging they must defend it against claims that it plundered millions of dollars from gun seller United Sporting Cos. Inc., which blamed its bankruptcy on Donald Trump's win in the 2016 election. Access to case data within articles (numbers, filings, courts, nature of suit, and more. 544(b). Accordingly, Wellspring reinforces the importance of disinterested governance and arms length dealing in connection with the restructuring process. Id. 19.)1. 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. For purposes of South Carolina law, the parties disagree whether Prospect was a preexisting creditor or a subsequent creditor. Wellspring has one of the best track records in middle-market private equity; its people, capital and reputation bring certainty to transactions. The. 112]. Will His AI Plans Be Any Different? Wellspring, 2021 WL 4823513, at *10. Investments Number of Investments 2 Wellspring Capital Management has made 2 investments. It featured lower-priced clothing and was Gymboree's direct competitor for The Children's Place and Old Navy.. Public Records Policy. See Sheehan v. Saoud, 650 Fed. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. Founded in 1995, Wellspring Capital Management is a private equity firm headquartered in New York, New York. The Court now issues this order, granting the motions to dismiss for the reasons set forth below. Id. The firm prefers to invest in the business services, industrial, packaging, healthcare services, restaurants . In Sheldon, the defendant, a New York citizen, assigned some personal property to Mr. Dickinson. Oil Producers Hand $128 Billionto Investors as Doubts Grow About Future of Fossil Fuels, Your Saturday Briefing: Trumps Comeback Plan, Wall Street Whistles Away, British Parents Turn to Home Equity to Help Young Buy Property, Japanese Unions Seek Biggest Pay Rise in 25 Years for Workers, Sorry, Fed, Most US Mortgage Rates Were Locked In During Pandemic Lows, Italys CDP Is Nearing Offer for Telecom Italia Network. 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. You can help Wikipedia by expanding it. [Amended Complaint, 32]. At the conclusion of the hearing, the Court took the motions under advisement. By teaming up with strong management, Wellspring seeks to unlock underlying value and pursue new growth opportunities through strategic initiatives, operating improvements and add-on acquisitions. Ellett used $54,860,549.74 of the First Amendment loan proceeds to fund distributions to the Transferee Defendants. P. 12(b)(6) provides for dismissal of an action if the complaint "fail[s] to state a claim upon which relief can be granted." At all times relevant to these claims, Wellspring Capital controlled (a) Wellspring Capital Partners Federal Rule of Bankruptcy Procedure 7012(b) provides that Federal Rule of Civil Procedure 12(b) applies in adversary proceedings. The Firm also has a long history of collaboration with entrepreneurs and closely held businesses to achieve outsized growth, with a large percentage of our portfolio companies being transitioned from founder ownership. We believe that this breadth and depth of experience enables the team to efficiently evaluate and complete acquisition opportunities across a broad range of industries. at 385. Please Update this case to get latest docket information. A New York buyout baron has taken a leave of absence from his fund after an explosive lawsuit claimed last week that he threatened an ex-employee to keep quiet after she accused his son of raping her. Bloomberg View columnist Barry Ritholtz looks at the people and ideas that shape markets, investing and business. 24. . Similarly, Merritt Dredging suggests that federal law would apply to a section 548 cause of action, but that state law should apply to fraudulent conveyance claims based on state law. It is not intended as and should not be construed as financial, investment, tax, legal, regulatory, or other advice. Tow v. Rafizadeh (In re Cyrus II P'ship), 413 B.R. .JFY+h!Hkw;s"$ 4AuF~!D =j]4z*g7i>B 1NEDm @@,!ptz"Br}-rh>wI }9.&>5/n2n/OefX At Wellspring we pride ourselves on client service. Sav. The South Carolina Supreme Court stated that New York law would govern the validity of the transfer before it, unless applying New York law would result in a violation of South Carolina public policy. This approach has historically delivered returns well above inflation Our clients Wellspring Capital Management is a leading middle-market private equity firm headquartered in New York. Since its founding in 1995, Wellspring has raised over $4 billion of initial capital commitments through . at 358. Charles E. Walker, Jr. argued in support of dismissal due to lack of a triggering creditor based on Prospect's secured status, failure to state a claim under New York law due to lack of insolvency, on equity grounds because Prospect failed to obtain a personal guaranty from Mr. Walker and because the distributions were specifically contemplated by the loan transaction, and due to failure to state a claim for fraudulent conveyance under South Carolina law. Business Restructuring, 541, 546 (Bankr. 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. The plaintiff's first and second causes of action are based on 11 U.S.C. New York law and South Carolina law differed as to whether such a transfer was permitted. Wellspring Capital Management is a leading private equity firm headquartered in New York. [Amended Complaint, 93]. 544 and 550 and S.C. Code 27-23-10; and (3) negligent misrepresentations against Wellspring Capital, Mr. Carles, and Mr. Johnson. 2022 Wellspring Capital Management Group LLC |. Cancellation and Refund Policy, Privacy Policy, and Reputation Management. They were not statements of presently existing fact. Otherwise you cannot get paid." 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.

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