- Date
- 4 October 2023
Blackstone pursues claim against rival Bain Capital
By Jake Rickman |
What do you need to know this week?
Today, the FT reported that investment titan Blackstone has instructed US law firm Pallas Partners in pursuit of a potential litigation claim against rival Bain Capital.
The subject of the dispute is Bain’s role in the collapse of the Italian company Fintyre, which manufactured tyres until its collapse in 2019.
Blackstone provided more than €200m in private debt to Bain Capital in its buyout of Fintyre in 2017. As part of the acquisition, several of Bain Capital’s senior managers were appointed to Fintyre’s board of directors.
However, a couple of years after the takeover, Fintyre suffered a dramatic financial collapse that saw all of Bain’s investment wiped out. Ordinarily, as a private debt creditor, Blackstone would have recovered most of its investment. However, another finance creditor had priority rights of repayment. This means Blackstone is unlikely to recover its investment following liquidation proceedings. It has accordingly commenced action against Bain to make up the shortfall.
Pallas Partners is also representing professional service firm, Teneo, in its role acting as Fintyre’s liquidator.
Why is this important for your interviews?
This dispute raises a plethora of issues, each of which is worth researching in more detail in preparation for your applications and interviews.
Some of the most salient lines of enquiry include:
How is this topic relevant to law firms?
Pallas Partners is considered a corporate and banking litigation-focused firm and has a relatively small office in London.
In addition to its role advising Blackstone and Teneo, Pallas Partners is also representing certain Credit Suisse bondholders that were wiped out following the investment bank’s collapse in March.
Kirkland & Ellis represented Bain in its acquisition of Fintyre back in 2017.
