Pimco, Silver Point Lose Fight Over 2022 Incora Debt Financing

Creditors including Silver Point Capital and bond giant Pacific Investment Management Co. wrongly stripped collateral rights from out-of-favor bondholders as part of a controversial $250 million rescue package for aerospace parts maker Incora, a judge ruled, potentially upending the company’s reorganization plan.

US Bankruptcy Judge Marvin Isgur ruled that the 2022 deal for Platinum Equity-backed Incora was not properly authorized, siding with disgruntled bondholders including JPMorgan Chase & Co., asset manager BlackRock Inc. and hedge fund King Street Capital Management. Incora’s current revival proposal is based in part on the assumption that the financing package would ...