UPDATE 1: 10:26 a.m. ET 1/4/2024: In a
reservation of rights filed this morning the ad hoc group of 2024/2026 formerly secured Wesco/Incora noteholders confirms it opposes the debtors’ Dec. 27
amended plan and calls the plan and related stipulation with the official committee of unsecured creditors (discussed below) the next steps in the debtors’ effort to moot
litigation over the
2022 uptier exchange transaction that stripped the noteholders’ liens. A hearing on approval of the stipulation is set for today at 3 p.m. ET.
The 2024/2026 noteholders reiterate that they hold approximately 65% to 69% of unsecured claims against the debtors and question why the UCC has agreed to abandon “the potentially valuable claims that it
sought standing to bring, or how the class of General Unsecured Claims benefits from the Stipulation.” “Absent a more robust explanation as to how the Stipulation benefits the Committee’s constituency, it is difficult to discern a reason the Court should approve the Stipulation,” the noteholders assert.
The noteholders add that in late December the debtors provided them with “information to diligence potential plan constructs” but say the debtors and the UCC failed to consult them regarding the economics of the amended plan prior to filing.
Original Story 3:17 p.m. UTC on Dec. 29, 2023
Wesco/Incora Debtors File Plan Stipulation With UCC, Say 2024/2026 Noteholders Soon to be Last Plan Holdout
Relevant Document:
UCC Stipulation Motion
This afternoon the Wesco/Incora debtors filed a motion for approval of a stipulation with the official committee of unsecured creditors to stay the UCC's
motion for standing to bring claims on behalf of the estates, including claims related to the debtors’
2020 take-private transaction, the
2022 uptier exchange transaction challenged by the 2024/2026 formerly secured noteholders and 2021 amendments to the debtors’ prepetition ABL facility. The terms of the stipulation are consistent with the
amended plan filed by the debtors on Dec. 27; specifically, general unsecured creditors (including the 2024/2026 noteholders) would share 3.5% of pre-dilution reorganized equity.
According to the motion, the stipulation with the UCC and an anticipated restructuring support agreement with first lien noteholders, former owner Carlyle, current equity sponsor Platinum and 2027 noteholder Langur Maize would leave the 2024/2026 noteholders as the only group opposed to the plan.
An emergency hearing on the motion is set for Thursday, Jan. 4 at 3 p.m. ET.