TPI Junior Creditors Defend Bid to Sue Oaktree Over Uptier Deal

Junior creditors of wind turbine blade manufacturer TPI Composites Inc. urged a bankruptcy court to deny Oaktree Capital Management’s motion to dismiss their lawsuit over a nearly $400 million “uptier transaction.”

Oaktree’s October motion attempts to “miscontrue” factual allegations in the suit, a committee of unsecured creditors said in a Nov. 14 objection in the US Bankruptcy Court for the Southern District of Texas.

The committee asked the court to have Oaktree’s claim recharacterized, saying it jumped over junior creditors in payment priority when it converted millions of dollars into secured debt.

Junior creditors’ attempt to cast the December ...