Former Standard Register Co. Settles Lawsuit with Silver Point
SRC Liquidation Co., what’s left of Standard Register Co., has one less obstacle to overcome now that it doesn’t have to face one of its biggest lenders in court.
According to Dayton Business Journal, SRC Liquidation Co., last week, asked the court to approve an agreement with Silver Point Finance and Minnesota-headquartered Taylor Corp. In September, Silver Point Finance, a subsidiary of Connecticut-based hedge fund Silver Point Capital, filed an objection charging that SRC Liquidation Co. was looking to divert millions of dollars in “wind-down fees” to new owner Taylor Corp.
SRC Liquidation Co. fired back, alleging that Silver Point Finance wanted to get around an agreement and secure more than $1 million for “manufactured issues” in the Chapter 11 case.
As reported by Dayton Business Journal, Silver Point Finance will receive $750,000 of the wind-down fund in light of the new agreement. Taylor Corp. no longer has a claim to that money.
In a court filing obtained by the newspaper, SRC Liquidation said "it risked losing the entire $1.85 million wind-down fund—as well as an insurance refund expected to go into that pot of money—in litigation costs should the case go to trial."
Silver Point Capital made the $275 million initial bid to buy Standard Register Co. at auction. Taylor Corp., which already owns several other major print and promotional companies, including ADG Promotional Products, Navitor and Label Works, and Amsterdam Printing, ultimately came out on top.