Progressing the first ever Chapter 11 case attempting to resolve national mass tort liability related to per-and polyfluoroalkyl substances (PFAS), S&C client Kidde-Fenwal obtained Bankruptcy Court approval for the sale of its operating business as a going concern on April 2. The purchaser is an affiliate of Pacific Avenue Capital Partners and 100 percent of the purchase price of $140 million in cash plus contingent earn-out payments of up to $60 million will be available to pay tort and other creditors. Kidde-Fenwal, a wholly owned subsidiary of Carrier Global Corporation, filed for Chapter 11 relief in May 2023. Before the closing of the sale transaction, Carrier will contribute certain assets related to Kidde-Fenwal’s business to Kidde-Fenwal and will license certain intellectual property rights to Kidde-Fenwal’s business.
The S&C team advising Kidde-Fenwal on the transaction includes Andy Dietderich, Keith Pagnani, Mimi Wu, Michael Fronk, Yaqi Han, Morgan Smiley and Alton Mathew. Andy Dietderich, Brian Glueckstein, Alexa Kranzley, Julie Kapoor and Meng Yu are advising on bankruptcy matters. Mehdi Ansari and Elianne Schiff are advising on intellectual property matters. Jeannette Bander and Rebecca Rabinowitz are advising on executive compensation matters. Justin DeCamp, Akash Toprani, Martin Erreich, Krystal Valentin, Miles Greene, Ariel Reiner, Michael Hirt and Zachary Huffman are advising on litigation matters. Joseph Matelis, Juan Rodriguez, Chris Graham and Suzanne Marton are advising on antitrust matters. Davis Wang, Ha Jin (Tessa) Lee and Stephen Profeta are advising on tax matters. Matt Brennan is advising on environmental Matters. Neal McKnight is advising on finance matters. Eric Queen, Brad Smith and Clea McClellan are advising on HSR matters.