Home

Former CEO of Radnor Sues Skadden
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Michael Kennedy, the former CEO of defunct packaging firm Radnor Holdings Corp has sued Skadden Arps and the law firm’s client, the hedge fund Tennenbaum, as well as some other legal and financial advisers in the U.S. Bankruptcy Court in Wilmington, Delaware.

Michael Kennedy alleges that Skadden had colluded with Tennenbaum Capital Partners to give the firm a $100 million windfall in the sale of Radnor to Tennenbaum in 2006. Kennedy has made a claim for $75 million and voiding of the sale of Radnor.

The lawsuit includes at least 10 claims including conspiracy, malpractice, breach of contract and fraud.

  
What
Where


Radnor, which used to make food packaging and chemical products for big food chains declared itself bankrupt in the wake of Hurricane Katrina leading to shortages in raw materials and natural gas. The company was sold to Tennenbaum which already owned about $95 million in bonds in the company.

However, according to Kennedy, before declaring bankruptcy he had repeatedly asked Skadden to advise the company on an asset sale and out of-court restructuring. However, Skadden and Tennenbaum rejected Kennedy’s proposals to restructure outside the court through equity investments and asset sales.

Skadden also advised Radnor that a bankruptcy sale to Tennenbaum was its best option.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




Apparently, Kennedy was unaware that Tennenbaum had paid Skadden about $4 million in 2004-5 for legal services related to raising funds that Tennenbaum then invested in Radnor.

And he also did not know at the time that some Skadden partners including one involved in the Radnor matter had invested their personal moneys in Tennenbaum through an investment vehicle controlled by Skadden.



The eventual sale of Radnor to Tennenbaum resulted in the hedge fund gaining about $100 million, while at the same time Kennedy’s family stake in Radnor was wiped out.

The real story, of course, would be unearthed if the lawsuit proceeds to the stage of discovery.

The case is Michael T. Kennedy v. Skadden Arps Slate Meagher & Flom, U.S. Bankruptcy Court, District of Delaware, No. 12-51308.



 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

Mid-level Tax Associate Attorney

USA-CA-Los Angeles

Los Angeles office of an AmLaw firm seeks mid-level tax associate attorney with 3-5 years of experie...

Apply Now

Real Estate/Transactional Attorney

USA-PA-Camp Hill

Camp Hill office of our client seeks real estate/transactional attorney with experience. The candida...

Apply Now

Corporate Attorney

USA-WY-Laramie

Laramie office of our client seeks corporate attorney with 2+ years of experience.

Apply Now

RELEVANT JOBS

Legal Assistant - Estate Planning / Tax

USA-NC-Winston Salem

Spilman Thomas & Battle, PLLC, seeks an experienced Corporate Legal Assistant to join its Winston-Sa...

Apply now

Contract Attorney

USA-CA-Anaheim

ESTABLISHED SMALL LAW FIRM IS SEEKING A PRIVATE CONTRACT ATTORNEY FOR CIVIL LITIGATION, CORPORA...

Apply now

Immigration Paralegal

USA-FL-Miami Gardens

$38,000 - $42,000 a year Prepare tables of contents with supporting evidence, fill out legal f...

Apply now

Commercial Litigation and Insurance Defense Associate Attorney

USA-FL-Fort Lauderdale

Kim Vaughan Lerner, a downtown Fort Lauderdale firm practicing in the areas of commercial litigation...

Apply now

SEARCH IN ARCHIVE

To Top