Cases & Deals

Spark Networks obtains chapter 15 recognition of first-ever cross-border restructuring under German StaRUG

Spark Networks obtains $110 million senior secured credit facility upon emergence from first-ever cross-border restructuring proceeding under German StaRUG, and recognized by U.S. chapter 15

Client(s) Spark Networks SE

Jones Day represented Spark Networks SE (“Spark”), a Germany-based leading social dating platform, operating worldwide, together with Spark Networks, Inc. and Zoosk Inc., as co-borrowers, in connection with an amended $110 million secured credit facility provided by a U.S.-based private credit fund as part of Spark's emergence from a long-term forbearance and the first-ever cross-border restructuring proceeding under German StaRUG, where such proceeding was recognized under chapter 15 of the U.S. Bankruptcy Code.

The Jones Day team advised Spark on a nearly yearlong forbearance of its existing secured credit facility as Spark navigated the restructuring process, including multiple amendments to a forbearance agreement with its lender and interim financing arrangements to maintain liquidity through the completion of the StaRUG proceedings.

Spark emerged from the StaRUG proceedings with the benefit of an amended credit agreement, negotiated by Jones Day, under which the amount of pre-StaRUG debt owing thereunder was reduced and Spark and the other borrowers were provided with a new $10 million revolving credit facility.