The United States District Court in Delaware recently issued a welcome decision for private equity firms whose portfolio companies run afoul of the Worker Adjustment and Retraining Notification Act (the “WARN Act”). In In re Jevic Holding Corp. (PDF), the Court affirmed a bankruptcy court decision holding that Sun Capital Partners (“Sun”) was not liable for the WARN Act violations of Jevic Transportation Inc. (“Jevic”) (which was owned by one of Sun’s wholly-owned subsidiaries). Jevic’s WARN Act obligations were triggered after Sun chose not to invest more money in Jevic, leading Jevic to default on a financing arrangement and ultimately declare bankruptcy... Continue reading