We use cookies on this site to enable your digital experience. By continuing to use this site, you are agreeing to our cookie policy. close

Orchard Trustee Sues Golden Gate Over $310M Payout

Law360 (April 28, 2011, 2:09 PM EDT) -- Bankrupt Orchard Brands Corp. subsidiaries sued various Golden Gate Capital Corp. funds Wednesday in Delaware, seeking to claw back a $310 million special dividend that allegedly helped cast the retailer into insolvency.

The Golden Gate funds, which own a controlling stake in Orchard Brands, paid themselves and their investors the extravagant dividend after orchestrating the retailer’s 2007 leveraged buyout of Blair Corp. that heaped $650 million in secured debt onto the company’s balance sheet, according to a bankruptcy court adversary proceeding filed by the litigation trustee...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.