Capital Source

Chimicles & Tikellis LLP represented unitholders of Capital Source, L.P. and Capital Source II, L.P., two Delaware limited partnerships, in an action against the general partners and certain affiliates, seeking a liquidation of the partnerships and damages. The general partners and certain of their affiliates sought the consent of the unitholders to merge the partnerships into a newly-formed limited partnership which the general partners and their affiliates intended to continue to operate under liberalized governance provisions. Chimicles & Tikellis LLP vindicated the voting rights of the Limited Partners which led to the rejection of the ultimately proposed merger by the Limited Partners, and, ultimately, changes to the transaction and a settlement of the action. The settlement revised the merger terms to add $11 million in special cash distributions to Limited Partners and a $3.5 million unit repurchase program.