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BREAKING: Judge Isgur Says $250M Incora/Wesco Uptier New Money Claim Not 2026 Secured Notes Claim Under July 10 Decision

At the end of the Incora/Wesco status conference this morning, Judge Marvin Isgur clarified the effect of his July 10 ruling partially invalidating the debtors' March 2022 uptier exchange on the classification of claims for $250 million in new money contributed by 1L noteholders Pimco and Silver Point in the transaction. Judge Isgur said that under his ruling, the new pari passu 2026 notes issued by the company in exchange for the $250 million were actually never issued. As a result, the Pimco/Silver Point group does not have a secured 2026 notes claim for the new money. The judge cautioned that the Pimco/Silver Point group has some kind of claim for the $250 million given to the debtors, but said his decision was not intended to dictate the treatment of such a claim under a proposed plan.