ICG Global Loan Fund 1 DAC, et al. v. Boardriders, Inc., et al. (NY Sup. Ct.)

Co-counsel to group of minority lenders challenging non-pro rata “uptier” transaction entered into between borrower, majority lenders and equity sponsor. The litigation involved a timely topic that has garnered significant attention in the market, i.e., whether a private roll-up debt exchange qualifies as an “open market” purchase exempt from the credit agreement’s general requirement that all distributions be made pro rata. After we successfully opposed defendants’ motion to dismiss, allowing the minority lenders’ primary claims to proceed to discovery, the parties entered into a settlement, resulting in an outcome favorable to our clients.