PIMCO’s building is located at 650 Newport Center Drive. (File photo: H. LORREN AU JR., – ORANGE COUNTY REGISTER)
By Steven Church | Bloomberg
Creditors including Silver Point Capital and Newport Beach-based Pacific Investment Management Co. wrongly stripped collateral rights from out-of-favor bondholders as part of a controversial $250 million rescue package for aerospace parts maker Incora, a judge ruled, potentially upending the company’s reorganization plan.
US Bankruptcy Judge Marvin Isgur ruled that the 2022 deal for Platinum Equity-backed Incora was not properly authorized, siding with disgruntled bondholders including JPMorgan Chase & Co., asset manager BlackRock and hedge fund King Street Capital Management.
Forth Worth, Texas-based Incora’s current revival proposal is based in part on the assumption that the financing package would survive a court challenge.
The case is Wesco Aircraft Holdings Inc., 23-90611, US Bankruptcy Court for the Southern District of Texas (Houston).