Late Friday, The Finish Line, Inc. announced it had filed an answer, counterclaim, and third-party claim for declaratory judgment in connection with the suit filed the prior week by Genesco, Inc. to force FINL and its financing partner, UBS, to consummate their planned merger (see SEW_0739).
In its filing, The Finish Line is seeking an order from the same Chancery Court in Nashville, Tenn. to compel Genesco to provide all requested financial data and access to personnel, stipulating that a failure to do so in a timely manner is a breach of the merger agreement. As previously announced, The Finish Line said it has asked GCO for certain financial and other information as well as access to Genesco's CFO and financial staff. However, FINL now contends that Genesco has not responded to and has refused to comply with these requests. In a release issued last Monday in response the GCO suit, FINL said it had “complied with its obligations under the merger agreement.”
The Finish Line is also seeking a declaratory judgment of whether a “Company Material Adverse Effect” has occurred under the merger agreement, as UBS questions and Genesco denies. As previously announced, UBS provided The Finish Line with a commitment letter regarding financing for its proposed acquisition of Genesco. As UBS is a necessary party whose interests are directly affected by the declaratory relief sought, UBS has been named a third-party defendant in the action.
