S&C is representing Lion Capital in its affiliate's agreement to acquire substantially all of the assets of John Varvatos Enterprises Inc. in a sale under Section 363 of the U.S. Bankruptcy Code. Delaware bankruptcy Judge Mary Walrath approved the Chapter 11 sale on July 24, following an auction in which Lion was determined the only qualified bidder.
Lion will acquire the assets for consideration that includes a “credit bid” of Lion's secured claims under the debtor-in-possession credit facility and certain of its prepetition secured debt. At auction, Lion bid against a portion of the Varvatos debt it holds. The sale also includes a settlement with the official committee of unsecured creditors. In exchange, the committee will not challenge the viability of Lion’s secured liens.
John Varvatos is a luxury men's lifestyle brand that designs, manufactures and retails high-end fashion. Lion Capital is a consumer-focused private equity firm that has owned over 100 consumer brands.
Jim Bromley is leading on restructuring matters and
Ari Blaut is advising on finance matters. Krishna Veeraraghavan and
Rita-Anne O'Neill are handing M&A matters;
David Hariton is advising on tax matters;
Medhi Ansari is advising on intellectual property matters;
Heather Coleman is advising on employee benefit matters; and
Joe Matelis is advising on antitrust matters.