Peter Brant sues his lawyers for malpractice after he becomes liable for his company’s underfunded pension plan
Peter Brant, owner of White Birch Paper Company, is suing the law firm that handled the sale of one of his companies – SP Newsprint – during a period of debt reorganization after he became liable for the company’s underfunded pension plan.
Brant owned SP Newsprint which filed for bankruptcy protection in 2011, a year after his White Birch Paper Co. filed for creditor protection.
Shearman & Sterling, one of USA’s oldest and most distinguished law firms, represented Brant in a transaction to form a new company (BD White Birch Investment LLC) that would combine SP Newsprint and White Birch Paper Co. and acquire $94.5 million of White Birch Paper Co.’s assets out of bankruptcy.
Brant owned a 75% interest in both companies before the bankruptcy. He bought the remaining 25% of both companies for $16.9 million. Then he struck a deal with GE Capital, one of SP Newsprint’s creditors, to sell SP Newsprint’s assets for about $145 million. By doing this, Brant became liable for SP Newsprint’s $76 million underfunded pension plan.
Brant is suing the law firm of Shearman & Sterling and names law firm partner Douglas P. Bartner as a defendant in the professional malpractice lawsuit. Brant said the law firm must have known that the pension plan was underfunded and that the sale would result in Brant becoming liable for that shortfall.
Newsprint Magnate Peter Brant Files Suit In Connecticut Against Law Firm (Connecticut Law Tribune)
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