On May 2, 2022, after a lengthy trial, Judge Christopher Sontchi of the Bankruptcy Court for the District of Delaware (the “Court”) ruled (the “2022 Opinion”) that a private equity sponsor (the “Sponsor”)1 breached its fiduciary duty to its distressed portfolio company, ASHINC Corporation (“Allied” or the “Company”), which ended up in bankruptcy.2 Specifically, the Court … Continue reading ASHINC or Swim Case Study: Lessons for Private Equity Sponsors on Risks Relating to Distressed Portfolio Companies (Part II: Breach of Fiduciary Duty)