Sallie Mae GC resigns

The general counsel of US student loan company Sallie Mae has resigned just three days after settling a suit against JC Flowers after the private equity house abandoned its $25.3bn bid for the company.

Robert Lavet, general counsel of Sallie Mae for 16 years, stepped down from his role on 31 January with deputy general counsel Michael Sheehan stepping in to head up the in-house legal team on an interim basis.

Sheehan said: “Executive management has made no definitive plans for the legal team as yet, but, in the meantime, I will serve as acting general counsel.”

The company recently hit the headlines when buy-out group, JC Flowers called off its $25.3bn bid for Sallie Mae citing two material adverse effect clauses (MACs) relating to US student loan legislation.

After taking the JC Flowers-led consortium to court to force payment of a $900m break-up fee, the company settled with a new credit line for its lenders.