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Anthology is facing a potential upset of its proposed DIP financing based on another unequal roll-up in the Southern District of Texas.

The education technology company sailed through an uncontested first-day hearing receiving approval of all requested relief, including interim approval of a $100m priming DIP with a 1:1 roll-up of prepetition debt and $50m in new term loans, as reported by 9fin, which is being funded by an ad hoc group of prepetition lenders led by Oaktree Capital Management and Nexus.

Prepetition lender, Vector Capital, represented by Glenn Agre has objected to final approval of the proposed DIP arguing that it was excluded from participation in violation of “sacred rights” under its prepetition credit agreement with the debtors that provides for mandatory pro rata sharing.