SportCo Creditors’ Liquidation Trust has sued Wellspring Capital Management, various related entities and its principals, accusing them of gross mismanagement and self-dealing that ultimately resulted in the sporting goods distributor’s bankruptcy filing last summer. Ronald Friedman is the trustee of SportCo, which is all that remains of the after inventory and other assets were auctioned off. This new action was filed in DE bankruptcy court, but makes broadly similar allegation as an earlier suit filed in Lexington County, SC, by Prospect Capital, the company’s lender and secured creditor.

While the “Trump Slump” in the firearms business undoubtedly contributed to the debtor’s ... Log in to view full article.