Quest Software creditors who were left out of key negotiations with the company and its sponsor Clearlake have a short window to decide on a proposed liability management deal with relatively punitive terms, according to 9fin sources.

The transaction includes a familiar flavor: $350m in new financing and an exchange offer that captures around $200m of discount but yields an unwieldy capital structure that sprawls across five tranches. What’s more, there is a 15-point gap between the in-group — which holds the majority of the term loan debt necessary to effectuate the LME — and the out-group in the debt swap, not even accounting for the more favorable mix of exchange paper available to the in-group, sources said.