(Bloomberg) -- Aerospace supplier Incora won court permission to exit bankruptcy after announcing that its top creditors have agreed to support a restructuring after years of acrimony over an infamous financing maneuver that pitted lenders against each other.
Lawyers representing Silver Point Capital, bond giant Pacific Investment Management Co., JPMorgan Chase & Co., BlackRock Inc. and other creditors said Friday they would support Incora’s Chapter 11 plan following weeks of negotiations. Other creditors also agreed not to oppose the restructuring, Incora lawyer Andrew Leblanc said during a Texas court hearing.
It will still be several weeks before Incora emerges from bankruptcy as lawyers continue to finalize stipulations and related agreements on how the company will be run. Judge Marvin Isgur said he would confirm the restructuring plan, pending finalization of the agreements.
“I think that the last thing anyone expected was an unopposed confirmation hearing in this case,” Isgur said.
In 2022, Incora secured controversial financing that pushed some of its lenders down the repayment line. In July, Isgur ruled that Silver Point and Pimco wrongly stripped collateral rights from other investors as part of the $250 million rescue plan for Platinum Equity-backed Incora. The ruling was a partial victory for JPMorgan and BlackRock.
Creditors continued to fight following Isgur’s ruling, which put the aerospace supplier’s restructuring in limbo. But major creditors were able to resolve their disputes after weeks of negotiations. Under the original reorganization plan, Incora would cut about $2 billion in debt and be worth about $1.65 billion, according to court documents.
The case is Wesco Aircraft Holdings Inc., 23-90611, US Bankruptcy Court for the Southern District of Texas (Houston).
--With assistance from Steven Church.
©2024 Bloomberg L.P.