Pimco Moves to Trim B. Riley-Backed FRG’s Bankruptcy Protections

Pacific Investment Management Co. and private equity firm Irradiant Partners LP ramped up their opposition to Franchise Group Inc.'s restructuring proceedings, urging a judge to strip the B. Riley Financial-backed company of core bankruptcy protections.

Pimco and Irradiant, together positioned as junior lenders who owed more than $600 million in the brand owner’s Chapter 11 case, asked the US Bankruptcy Court for the District of Delaware on Wednesday to terminate the company’s exclusive right to propose and solicit restructuring plans, lift restrictions on creditors’ rights outside of bankruptcy, or appoint a trustee to commandeer the case.

The investment firms said ...