Lucky Bucks’ PE Settlement Unlikely to Be Approved, Judge Says

A Delaware judge warned Lucky Bucks LLC it’s unlikely she’ll permit the bankrupt gaming machine operator to proceed with a restructuring plan that settles allegations owner Trive Capital Inc. misled bondholders in order to raise debt that was used to pay shareholders.

Judge Karen Owens said during a Friday court hearing “she’s hard pressed to see how she’ll ever approve” the Trive settlement which is opposed by a group of bondholders owed $250 million. The group includes Marathon Asset Management LP, Monarch Alternative Capital LP and BC Partners.

Judge Owens said she’s inclined to take more drastic action in ...