Blackstone, KKR Exit Lawsuit Over Rescue Plan for One Call Corp.

Blackstone Inc. and KKR & Co. have sidestepped a lawsuit challenging their rejection of a debt restructuring plan at One Call Corp.

The plan had been proposed by a hedge fund affiliate of Chatham Asset Management LLC to reverse the health care company’s fortunes after a Covid-induced business slowdown. Chatham’s lawsuit attempting to hold the private equity giants and board members at One Call liable amounts “to little more than disagreement with the Board’s decision to reject” the cash flow proposal, Vice Chancellor Nathan A. Cook said in a 21-page letter opinion Monday granting a motion to dismiss.

“Chatham’s allegations ...