Case Studies
Leading Alternative Investment Firm
Business Services

SITUATION
- Black Diamond Capital Management is a leading alternative investment firm with over $10 billion in assets across four core platforms including Black Diamond Commercial Finance, LLC (the “Company”)
- IAP Worldwide Services, Inc. (“IAP”) is the middle market leader in providing expeditionary and contingency operations support to the Department of Defense and National Security Community; 2022 revenues were $470.3MM
- The Company was the majority senior secured lender to IAP and was also collateral agent for the lending syndicate
- IAP by early 2023 found itself in considerable financial trouble, plus the syndicate debt was maturing July 23, 2023. On September 18, 2023 a $114MM unsecured judgement was domesticated, threatening IAP’s solvency, leading to IAP conducting a sale process. Note: IAP was not able to seek bankruptcy protection without losing its most valuable government contracts to competitors
- During the sale process IAP continued to lose employees and became increasingly financially unstable, imperiling it as a going concern
- On November 28, 2023 the Company, as collateral agent, held an Article 9 public sale of IAP’s collateral which comprised substantially the entire business
- The judgement creditor sought injunctive relief to the Article 9 public sale results, claiming that the process was conducted improperly
- On December 14, 2023 Chiron was hired by Company counsel for expert testimony on this Article 9 public sale
OUTCOME
- Chiron prepared a Declaration which was submitted to the United States District Court, Southern District of New York, on December 17, 2023
- Subsequent to this date, the judgement creditor’s request for injunctive relief to the November 28, 2023 Article 9 sale was denied
- The Company’s affiliates acquired IAP on January 22, 2024