A unit of Ronald Perelman’s MacAndrews & Forbes Holdings Inc. sued Ira Rennert, claiming he unjustly enriched himself when a company he controls took $109 million in loans from a joint venture owned by the two billionaires.
MacAndrews’s AM General Holdings LLC and a Rennert-owned company, ILR Capital LLC, share a third company called Ilshar Capital LLC. Ilshar, managed by Rennert through ILR, wrongly made loans to another Rennert company between 2009 and last year on favorable terms that included no required collateral or payments for five years, according to the complaint filed yesterday in Delaware Chancery Court.
“Rennert was on both sides of the transaction,” AM General said in the complaint.
Rennert didn’t immediately return a phone message left at his New York office seeking comment on the suit.
Perelman’s MacAndrews bought control of truckmaker AM General from Rennert’s Renco Group Inc. in 2004. As part of that transaction, Ilshar was created and capitalized by AM General’s holding company, which MacAndrews controls, according to the complaint.
Rennert caused Ilshar to loan Renco money in violation of Ilshar’s operating agreement, according to the complaint. Rennert also breached the operating agreement by causing Ilshar to invest more than $200 million in hedge funds alongside Renco and its affiliates, AM General alleged.
The case is AM General Holdings LLC v. Renco Group, 7639, Delaware Chancery Court (Wilmington).