B. Riley-Tied Bankruptcy Case Pits Pimco Against HPS, Others (2)

Senior creditors to Franchise Group Inc. are fighting their lower-ranked peers over the direction of the brand owner’s bankruptcy case, which kicked off Tuesday with the company’s first appearance in federal court.

The company entered Chapter 11 with approximately $2 billion in debt and a plan for senior lenders holding about half of that, including HPS Investment Partners, Garnett Station Partners, HG Vora Capital Management and Arena Capital Advisors, to take ownership of the B. Riley Financial Inc.-backed business in its restructuring, according to people with knowledge of the negotiations.

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