Private Credit Deal Gone Bad Spawns Court Fight Over Conflicts

Planet Networks Inc. thought it had landed a $50 million private credit deal to finance the fiber internet company’s expensive push into New York’s Hudson Valley. Instead, its founder now says a private equity firm dangled the loan to access his trade secrets while its own competing startup tried to swoop into the region.

The financing gone bad with Wafra Inc.-backed private equity manager Post Road Group has landed in New York state court, with a lawsuit filed earlierthis month by Planet.

The fiber internet company accused the Connecticut-based manager and its co-founder Michael Bogdan of misrepresenting their ...