Cerberus Battles SVP Over Bankrupt Chemical Firm TPC (1)

Some of the biggest names in distressed investing, including Cerberus Capital Management and Strategic Value Partners are battling each other for influence in the bankruptcy case of chemical maker TPC Group Inc.

Two competing groups of noteholders appeared in federal court Thursday, fighting over whose debt TPC must pay first. They also argued about who should be allowed to fund the reorganization of the Houston-based company. The dispute threatens to upend TPC’s effort to slash $950 million in debt.

Strategic Value and its allies, including Redwood Capital Management and Monarch Alternative Capital, are backing a restructuring deal that would ...