Spurned Creditors Sue to Unwind Controversial Incora Deal (1)

Another creditor-on-creditor clash that pit distressed investing heavyweights against each other is headed to court.

Lenders spurned in a financing deal aerospace supplier Incora inked earlier this year filed a lawsuit in New York Supreme Court on Monday, seeking to unwind what they call a “sham” transaction, according to a complaint filed by lawyers at Kobre & Kim on behalf of more than 60 firms.

Plantiffs including an entity indirectly owned by Golden Gate Capital, JPMorgan Chase & Co.’s asset management arm and funds managed by BlackRock Inc. allege the deal violated credit agreements tied to the Platinum Equity-backed company’s ...