30 05 2016

BlueCrest Capital Management, DW Partners, Macquarie Credit Investment Management, Mudrick Capital Management, Saba Capital Management, T. Rowe Price Associates, and Taconic Capital Partners secures a victory in Litigation Arising o

Blank Rome won a complete victory in litigation arising out of the RadioShack bankruptcy case, when the Bankruptcy Court in Delaware issued a decision and order granting our motion to dismiss an adversary complaint seeking to recover $232 million from BlueCrest Capital Management, DW Partners, Macquarie Credit Investment Management, Mudrick Capital Management, Saba Capital Management, T. Rowe Price Associates, and Taconic Capital Partners and other defendants.


The complaint filed against our clients by Salus Capital Partners was dismissed “with prejudice” and cannot be refiled. Blank Rome’s clients were BlueCrest Capital Management, DW Partners, Macquarie Credit Investment Management, Mudrick Capital Management, Saba Capital Management, T. Rowe Price Associates, and Taconic Capital Partners, asset-based lenders to RadioShack with first priority liens on receivables and inventory. Salus was the agent for term loan lenders that held junior liens on the same collateral. The ABL lenders and Salus were party to an Intercreditor Agreement. After RadioShack filed for bankruptcy in February 2015, Salus claimed that a restructuring of the ABL loan in 2014 violated the Intercreditor Agreement and demanded that our clients disgorge $232 million. Chief Bankruptcy Judge Brendan Shannon completely rejected Salus’ arguments, concluding that “the ABL Lenders’ first lien rights in the Liquid Collateral were not waived or otherwise impaired” as a result of the restructuring. Blank Rome represented the ABL lenders in the 2014 restructuring, the RadioShack bankruptcy case (including as DIP lenders), and the Salus adversary proceeding. The law firm of Davis Polk acted as co-counsel in the adversary proceeding. Blank Rome has advised with a team including Lawrence F. Flick II (Picture), Rick Antonoff, Stanley B. Tarr, John E. Lucian, Marianne T. Caulfield, Leon R. Barson, Michael Kim, Erin O'Brien Harkiewicz and Victoria A. Guilfoyle. Involved fees earner: Lawrence Flick II - Blank Rome LLP; Marianne Caulfield - Blank Rome LLP; Michael Kim - Blank Rome LLP; Rick Antonoff - Blank Rome LLP; Stanley Tarr - Blank Rome LLP; Leon Barson - Blank Rome LLP; Erin O'Brien Harkiewicz - Blank Rome LLP; Victoria Guilfoyle - Blank Rome LLP; John Lucian - Blank Rome LLP;

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