Leveraged Loan Investors Sue Over Oaktree’s Distressed Deal

Money managers including Intermediate Capital Group, Z Capital Credit Partners and Assured Investment Management’s BlueMountain have sued Boardriders, a surfwear retailer, to block a controversial financing the company got in August.

The plaintiffs, which also include York Capital Management, Great Elm Capital Corp. and OFS Capital Corp., are lenders to Boardriders, and said in their lawsuit that the company’s new debt violated the terms of their lending agreements. At issue is the order in which investors get repaid if the company fails. The new funding, for over $100 million, is now set to get repaid before the existing loans. ...