Firm Can Keep $120M Investment In Distressed Co.

Law360, New York (November 17, 2006, 12:00 AM EST) -- A federal bankruptcy judge on Thursday ruled in favor of a private equity firm that invested $120 million in foam cup maker Radnor Holdings Corp. just before the company filed for bankruptcy protection.

Creditors of Radnor had argued that Tennenbaum Capital Partners took advantage of the company’s financial distress in order to gain control of the company and shouldn’t be allowed to bid on the company’s assets in its Monday auction.

U.S. Bankruptcy Judge Peter Walsh rejected the creditors’ arguments, saving Tennenbaum its $120 million investment....
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