Spark Networks' German StaRUG plan confirmed in first-ever cross-border restructuring under German StaRUG and U.S. chapter 15
Client(s) Spark Networks SE
Jones Day is representing 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 will become Spark Networks' sole equity holder in exchange for waiving over $45 million of debt and providing approximately $24 million to support business operations and the Company's strategic alternatives. The representation includes (i) the StaRUG proceeding, commenced in the Local Court Charlottenburg, Berlin, Germany – Restructuring Court, and (ii) the chapter 15 proceedings of a holding company and two subsidiaries before the U.S. Bankruptcy Court for the District of Delaware. On December 14, 2023, 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. The chapter 15 debtors intend to seek chapter 15 recognition of the German Court's approval of the restructuring plan.