VPR Creditors Say PE Owner's $50M Claim Must Be Redefined

Law360, New York (July 29, 2013, 6:43 PM EDT) -- Creditors of oil and gas company VPR Corp. sued affiliates of the company's private equity owner in Texas bankruptcy court Friday, saying their alleged $50 million secured claim is actually equity and should be reclassified.

The official creditors committee contends that the “secured loan” from affiliates of Chicago-based Victory Park Capital Advisors LLP was actually a capital infusion into a “vastly undercapitalized company” in exchange for equity.

The committee argues that if any of the $50 million claim is found to be debt rather than equity,...
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