Covia, Creditors Square Off Over Deal With Shareholder Sibelco

Covia Holdings Corp. is asking the bankruptcy court to approve a settlement with controlling shareholder SCR-Sibelco NV to pay unsecured creditors $3.75 million in exchange for release of liabilities related to a 2018 merger.

The committee of unsecured creditors oppose the agreement, arguing that legal claims it could bring against Sibelco and other parties could be worth up to $800 million to the estate. Covia, which provides sand used in fracking, says no viable claims exist.

The dispute, which could determine the fate of Covia’s bankruptcy plan, played out over a four-day trial before Judge David R. Jones of the ...