TPC Group Creditors Fight $238 Million Bankruptcy Loan ‘Roll-up’

Chemical manufacturer TPC Group Inc. is facing challenges from investor Cerberus Capital Management L.P. and unsecured creditors over a proposal to fund its Chapter 11 case through a loan that would benefit holders of $238 million worth of pre-bankruptcy debt.

TPC is seeking final approval of a $323 million term loan facility that provides just $85 million worth of new money to fund the Houston-based firm’s bankruptcy proceedings. The rest of the amount comprises a February 2021 note issuance to be rolled up into the loan, elevating the priority of debts owed to a select group of noteholders supporting a ...