Embarq Corp. creditors are preparing a notice of default over the $3.9 billion debt package to help fund Apollo Global Management Inc.’s buyout of a Lumen Technologies Inc. business unit, according to people with knowledge of the matter.
Bondholders owning the notes due 2036 say the debt, which is sitting on bank balance sheets after a shelved effort to sell it to investors, violates their indenture by overriding their priority for repayment. The creditors, who hold nearly 50% of the notes and are getting advice from Paul Hastings, are preparing to sue for breach of fiduciary duty, breach of ...
