Trinseo Lenders Sue Apollo, Oaktree Over Liability Deals (1)

A group of Trinseo lenders that were left out of debt restructuring transactions sued the bankrupt plastics maker and other lenders, including Apollo Global Management and Oaktree Capital Management, claiming they violated credit agreements.

The excluded lender group, which says it stands to receive “virtually nothing” on hundreds of millions of dollars in claims, seeks to invalidate over $1 billion in intercompany loans, void credit agreement amendments, and subordinate competing claims, according to a Tuesday suit in the US Bankruptcy Court for the Southern District of Texas.

The excluded lenders, led by a Cayman Islands-based fund managed by CastleKnight Management, ...