NEW YORK, Oct. 04, 2021 (GLOBE NEWSWIRE) – Law firm Calfee, Halter & Griswold LLP has filed a complaint on behalf of the noteholders of RP Oldco Inc., formerly known as Rustic Pathways Australia ( USA), Inc., against Henry David Venning, Michael C. Lucas as Trustee of the Henry David Venning Revocable Trust (U / A as of August 1, 2015), RP Oldco Inc., and one other person. Venning founded and operated RP Oldco Inc. for more than two decades as a student travel company focused on educational and experiential travel, and he continues to control, through a revocable trust, RP Oldco Inc.
The civil action, filed Oct. 1, 2021, in the Lake County, Ohio, Common Plea Court is on behalf of the noteholders to recover the damage they claim was primarily caused by Venning’s violations of a loan agreement and the related guarantee, as well as its alleged fraud and fraudulent transfers perpetrated against the Holders. The noteholders, who are widely dispersed across the United States, have hired Mark D. Thompson, a managing member of MDT Executive Management Co., LLC, to act as their representative in the lawsuit.
The Complaint alleges that the Holders’ claims arise from non-payment of principal, interest and charges related to their 2018 Bonds. Among their allegations is the fact that Venning knowingly and deliberately misappropriated the assets of RP Oldco Inc. .through multiple insider dealing while the company was clearly insolvent in the years in question and signed agreements providing for the payment of millions of dollars in obligations to himself, even after he claims to have resigned from RP Oldco Inc. The Noteholders further allege fraud in connection with the offering and sale of the Notes.
It is also alleged in the complaint that, in large part due to Venning’s alleged tort misconduct in 2019, RP Oldco Inc. suffered such financial distress and insolvency that it was forced to sell the quasi- all of its operating assets. As part of this third-party sale and in order to give the business a chance to survive and prosper, the noteholders made significant concessions on the terms of their tickets while Venning obtained from the buyer a $ 2 million exit deal for himself.
On October 1, the Court granted the Representative’s motion for a temporary injunction prohibiting Venning from transferring assets or property belonging to the Holders “which does not meet Venning’s obligations under a Guarantee which ‘he provided to the Applicant and to the Lenders he represents. “
Mark D. Thompson, Director of the Complainants’ Representative MDT Executive Management Co., LLC, commented, “I am satisfied that the allegations made in the complaint and the evidence underlying the allegations will convincingly establish the rights of the Noteholders to the remedy requested in the complaint. “
Senior Legal Counsel H. Jeffrey Schwartz, Co-Chair of Calfee’s Corporate Restructuring and Insolvency practice group and partner in charge of Calfee’s New York office, said: The Noteholders in seeking redress for them from the Court of common throws in Lake County, Ohio, as well as Thailand, Laos, Myanmar, Australia, and Costa Rica – all places where a large portion of Mr. Venning’s loan collateral is located.
About Calfee, Halter & Griswold LLP
Calfee, Halter & Griswold LLP is a full-service business law firm with 160 attorneys and offices in Cleveland, Columbus, Cincinnati, Indianapolis, New York and Washington, DC Calfee serves clients in the Midwest, across National and Global Business Areas Restructuring & Insolvency, Corporate & Finance, Benefits & Executive Compensation, Energy & Utilities, Estate & Estate Planning & Administration, Government Relations & Legislation, Intellectual Property, Labor & Employment, Litigation & Law immovable. Calfee has been recognized as a leading law firm by Rooms United States 2021 in competition law, banking and finance, business / mergers and acquisitions, employee benefits and executive compensation, general commercial litigation, insurance, intellectual property, labor and employment, natural resources and environment and real estate and by HNW Rooms in private wealth law. A founding member of Lex Mundi, Calfee offers international representation through a network of independent law firms with access to 22,000 lawyers located in more than 125 countries. Additional information is available at Calfee.com.
H. Jeffrey Schwartz, Co-Chair, Corporate Restructuring and Insolvency Practice Group and Managing Partner of the New York Office, Calfee, Halter & Griswold LLP
[email protected] ׀ mobile 646.469.6719 ׀ office 646.360.1555
Susan M. Kurz, Director of Marketing and Customer Development, Calfee, Halter & Griswold LLP
[email protected] ׀ mobile 513.502.8950 ׀ office 216.622.8346