Spark Networks obtains chapter 15 recognition of first-ever cross-border restructuring under German StaRUG
Client(s) Spark Networks SE
Jones Day represented Spark Networks SE in the first-ever cross-border restructuring under the recently enacted German restructuring law ("StaRUG") and chapter 15 of the U.S. Bankruptcy Code involving over $100 million of funded debt issued by a U.S.-based credit fund and guaranteed by other German and U.S. entities. Pursuant to the restructuring plan as confirmed by the German Court on January 4, 2024, secured lender MGG Investment Group LP became Spark Networks' sole equity holder in exchange for waiving debt and providing new liquidity to support Spark's business operations. The representation included (i) the StaRUG proceeding, commenced in the Local Court Charlottenburg, Berlin, Germany - Restructuring Court, and (ii) the chapter 15 proceedings of a German holding company and two U.S. subsidiaries before the U.S. Bankruptcy Court for the District of Delaware. The Delaware Bankruptcy Court granted chapter 15 recognition of the StaRUG proceeding as a foreign main proceeding as it relates to Spark Networks SE and foreign non-main proceedings as it relates to two U.S. subsidiaries. On May 17, 2024, Spark Networks obtained chapter 15 recognition of the German Court's approval of the restructuring plan.
