Wesco/Incora Uptier Litigants Outline Positions in Post-Trial Briefs; UCC Suggests Participants Behaved Inequitably, New 1L Notes Should Be Subordinated

Relevant Documents: Participants’ Brief 2024/2026 Noteholders’ Brief Langur Maize Brief UCC Brief On June 17 the Wesco/Incora uptier exchange participants and challengers filed post-trial briefs laying out their positions ahead of closing arguments on Monday, June 24, and Tuesday, June 25. The participants maintain each step of the secured notes exchange complied with the governing indentures and, even if it did not, the challengers are not entitled to equitable restoration of the pre-transaction capital structure; the 2024/2026 formerly secured noteholders counter that the exchange was a single, integrated transaction that violated the indentures, and the proper remedy is to restore their secured position. Judge Marvin Isgur’s decision on the dispute will determine whether the debtors proceed with their proposed plan, which assumes the validity of the post-uptier capital structure, or must renegotiate with the 2024/2026 holders as senior secured creditors. Under the plan, 96.5% of pre-dilution reorganized equity and $420 million in take-back paper would go to participants Silver Point and Pimco on account of their uptier first lien notes. Silver Point and Pimco would also receive $324 million in exit notes on account of their DIP notes. The participants (the debtors, former 2024/2026 noteholders Silver Point and Pimco, equity[...]