TPI Composites Inc. junior creditors and Oaktree Capital Management disclosed the details of an $18.275 million settlement of a lawsuit over an almost $400 million pre-bankruptcy transaction that converted the investment firm’s preferred equity into secured debt.
The resolution, if approved, would provide general unsecured creditors a chunk of funds from potential payouts Oaktree receives for its claims in TPI’s Chapter 11 case, according to a Wednesday filing in the US Bankruptcy Court for the Southern District of Texas.
The deal includes a “recovery sharing mechanism” that provides the junior creditors a portion of Oaktree’s cash distributions, the filing said. ...
Learn more about Bloomberg Law or Log In to keep reading:
See Breaking News in Context
Bloomberg Law provides trusted coverage of current events enhanced with legal analysis.
Already a subscriber?
Log in to keep reading or access research tools and resources.