Announcements

SRZ Represents Clarion Capital Partners in Bankruptcy Auction and Acquisition of Lenox Group Inc.

March 16, 2009

SRZ represented Clarion Capital Partners LLC and a group of other secured lenders in the bankruptcy auction acquisition of substantially all the assets of dinnerware company Lenox Group Inc., a deal valued at approximately $100 million, including cash and the assumption of certain liabilities. After a heavily contested auction process, Allan L. Gropper, U.S. Bankruptcy Judge for the Southern District of New York, authorized the group of secured term loan lenders to acquire Lenox’s assets on Feb. 25, 2009, memorialized by a sale order entered on March 4. The transaction closed on March 16, 2009. Business Reorganization Partner Adam Harris and Business Transactions partner David Rosewater led the transaction, supported by Business Reorganization partner Michael Cook and Finance partner Daniel Oshinsky, as well attorneys in the firm’s tax, environmental, employee benefits and IP areas. Lenox initially disqualified Clarion and accepted a lesser bid, citing doubts about the New York-based private equity firm’s ability to meet its financing commitments. In a trial over whether the court should approve the sale or reopen bidding, SRZ prevailed by providing overwhelming evidence of Clarion’s desire and ability to close on the purchase. Clarion invests in consumer products, business services, healthcare services, specialty financial services, and retail and niche media and entertainment.

This transaction was chosen as one of the Deals of the Year for 2009 by ACQ.