July 15, 2024
Following a six-month trial in the Incora/Wesco matter, U.S. Bankruptcy Judge Marvin Isgur delivered an oral decision in favor of Kobre & Kim’s clients on July 10. Two weeks ago, Judge Isgur had signaled from the Bench his intent to declare the company's 2022 uptier transaction "illegal" under the governing debt documents.
Kobre & Kim's clients challenged the transaction, which involved US $250 million in gross new money and the exchange of over US $1 billion of other debt. Judge Isgur said from the Bench, "Proof I have in the evidentiary record, frankly by clear and convincing evidence, is that the new 250 came in without authorization."
Following up on the above, Judge Isgur found that Incora/Wesco’s 2022 uptier transaction breached the lien protections in the Company’s 2026 secured note indenture. The ruling was reported by The Wall Street Journal and Bloomberg among numerous other media outlets.
Zachary Rosenbaum, Adam Lavine and Darryl Stein led the Kobre & Kim trial team.
