Hecate PE’s Creditors Lose Injunction Bid in Loan Deal Lawsuit

Private equity lenders NEC Fund VI HE Lender LLC and its affiliates failed to convince a Delaware Chancery Court judge to force Hecate Energy Group and its holding company to wire settlement proceeds into the creditors’ control account.

The creditors showed a likelihood of success on their contract claims, but they failed to show that success on those claims warrants the relief they seek, Chancellor Kathaleen St. J. McCormick said Wednesday. And although they showed a threat that the Hecate entities might not be able to satisfy a monetary judgment, they didn’t show that the equities tilt in their favor, ...