CRT Capital Group filed with the U.S. Bankruptcy Court an objection to FriendFinder Network’s motion to (1) assume a transaction support agreement and (2) to employ SSG Advisors. CRT asserts, “CRT was the Debtor’s exclusive financial advisor from November 2, 2012 until six days before the Petition Date, when the Debtors terminated CRT’s engagement in a deliberate attempt to avoid paying CRT contractually-required fees. CRT earned these fees through its substantial efforts as exclusive advisor to the Debtors beginning in November 2012, efforts that included helping to negotiate, and obtaining the consent of parties to, the TSA. Although the motions contain critical inaccuracies and omissions with regard to CRT’s work for the Debtors, CRT does not oppose the relief sought in the Motions. CRT is concerned, however, that the motions were deliberately (and misleadingly) drafted to undercut CRT’s claims. CRT therefore submits this omnibus response to: (i) describe the work that CRT performed for the Debtors that give rise to CRT’s claims for in excess of $3.5 million and (ii) explicitly reserve its rights in the event that the Motions incidentally impact CRT’s claims or rights against the Debtors.” The objection continues to explain, “In the SSG Application, the Debtors seek to retain SSG Advisors, LLC (‘SSG’) as investment banker and financial advisor, in accordance with the terms and conditions set forth in a letter agreement dated as of September 16, 2013 (the ‘SSG Agreement’). It is unclear from the SSG Application if SSG began providing advice or services to the Debtors before executing the SSG Agreement on September 16, 2013. However, the SSG Application (dated September 20, 2013) claims that given [SSG’s] work to date, the Debtors would be unduly prejudiced should the Debtors be required to retain an investment banker and financial advisor other than SSG in connection with these Chapter 11 Cases’ as doing so would require such investment banker and financial advisor’s familiarization with the intricacies of the Debtors and their business operations and financial affairs.”
About Brandy Chetsas
Brandy L. Chetsas is editor in chief at Bankrupt Company News. She joined New Generation Research, Inc. in 1998. As Director of Strategic Content, she leverages 20+ years of communications and project management experience for the distressed investing sector–with particular expertise on corporate restructurings via Chapter 11. Brandy began her career writing for a law enforcement-related publication and teaching English courses at numerous colleges in the U.S. and abroad.