Distressed-debt investors will be watching a trial starting Thursday over Incora’s 2022 debt transaction that could reshape the aerospace parts distributor’s restructuring plan, WSJ Pro Bankruptcy reported. In that deal, Wesco Aircraft Holdings, which does business as Incora, raised $250 million in new financing from Silver Point Capital, Pimco and other bondholders and exchanged $450 million in bonds due in 2024 for new debt with later maturities. The deal excluded holders of secured bonds including JPMorgan, BlackRock and SSD Investments, which is an affiliate of Golden Gate Capital, as well as a large holder of unsecured bonds, an affiliate of investment firm King Street Capital. The excluded investors filed two separate lawsuits two years ago against Incora, its private-equity owner Platinum Equity, participating investors, and the bondholder trustee that signed off on the deal, claiming that the deal violated the debt agreements and seeking damages for up to the full value of their debt holdings. They also said Incora failed to garner the approval of two-thirds of its bondholders to clear the threshold for the 2022 debt transaction. The trial, which is expected to last several days, follows a ruling by Judge Marvin Isgur of the U.S. Bankruptcy Court in Houston earlier this month allowing the lawsuits to proceed.
