Auto Parts Co. Loses Bid To Scrap $28M Claim By PE Firm

Law360, New York (April 13, 2012, 8:20 PM EDT) -- A New York judge on Thursday refused to dismiss a lawsuit against TAP Automotive Holdings LLC in which private equity firm Irving Place Capital is seeking to recover $28 million in debt it says was wiped out during a 2006 takeover of the auto parts maker by banks and insurers.

Judge Edward Ramos ruled Irving Place sufficiently had alleged that the senior lenders' takeover was a de facto merger and that the new entity is thus responsible for the debt. TAP and its bank owners, including...
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