A Delaware bankruptcy judge on Monday allowed unsecured creditors in the Standard Register Co. case to file suit against Silver Point Capital and Standard Register executives over the Dayton-based company’s 2013 acquisition of WorkflowOne, according to court documents obtained by the Dayton Daily News.
Attorneys for the unsecured creditors filed a 45-page lawsuit that alleges 15 counts of “fraudulent transfers” related to the WorkflowOne acquisition, which left Standard Register “insolvent, undercapitalized, and unable to pay their debts as they came due,” documents said.
The suit seeks unspecified damages from Standard Register’s board of directors and certain key officers for the breach of their fiduciary duties in approving the WorkflowOne acquisition. It also seeks to recover fees and transaction bonuses paid in connection with that acquisition.
Standard Register filed for bankruptcy protection March 12, simultaneously announcing a $275 million buyout agreement with a group led by Connecticut-based Silver Point.
Monday’s lawsuit seeks to prevent Silver Point from obtaining all of the value of Standard Register’s business at the expense of the Dayton company’s other stakeholders, including unsecured creditors.
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