iQor’s Bankruptcy Plan Giving Equity to Lenders Approved

iQor Holdings Inc.'s lenders will own all of the business outsourcing company after iQor won court approval of its bankruptcy reorganization plan that swaps equity for debt.

The company will shed $513 million from its balance sheet, according to the plan approved Wednesday by Judge David R. Jones of the U.S. Bankruptcy Court for the Southern District of Texas.

Holders of first-lien term loans will get 95.75% of the stock of the company emerging from bankruptcy, plus a new term loan. iQor had been owned in part by HGGC, a Bay Area private equity firm whose leadership includes former NFL ...