Judge Christopher Lopez took Trinseo and the ad hoc committee of senior secured creditors’ stay enforcement and judgment on the pleadings motions under advisement. He warned that the forthcoming CastleKnight-led excluded OpCo lender group’s LME challenge rulings could be a “knock-out blow” for multiple constituencies. If there is “going to be peace in the land,” Judge Lopez said, “now is the time to do it.” He also added that he was honestly not sure which direction he would rule.
The debtors, represented by Ryan Preston Dahl of Latham & Watkins, and the senior secured committee, represented by Kris Hansen of Paul Hastings, urged Judge Lopez to dismiss the excluded ad hoc group’s challenge to the company’s 2023 and 2025 liability management transactions, arguing that the suit violates the automatic stay, repackages estate claims and is barred by the governing credit documents.
9fin’s prior coverage of the stay violation motion can be found here and the judgment on the pleadings motion here.
The excluded OpCo lenders, represented by Duane Loft of Pallas Partners, responded that their claims are direct creditor claims, that section 502(b) expressly permits them to challenge the intercompany debt and that discovery...
