Private Equity Firm Vs. Portfolio Company CEO?
What on earth is going on between Monitor Clipper Partners and Jude Rake, CEO of Monitor Clipper portfolio company Recycled Paper Greetings. To say they aren’t on the same page would be an understatement. Back in September, RPG and Rake seemed to believe they were under attack from larger rival American Greetings. Specifically, they were upset about American Greetings buying over 50% of Recycled Paper’s first-lien debt. Rake referred to the move as “predatory,” and Monitor Clipper filed suit against American Greetings, arguing that the purchase violated a confidentiality agreement between the two companies. Then last week it appeared that the chill had thawed. American Greetings announced that it had reached an agreement to acquire RPG, which would first file for Chapter 11 bankruptcy protection in order to restructure its debt. In a formal statement, Rake said: “This acquisition is good news for our company on many fronts.”
