TriMark Lenders’ Suit Over Financing Can Proceed, Judge Says
- NY judge denies motion to dismiss breach-of-contract claim
- PE owners Centerbridge and Blackstone were dropped from suit
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TriMark USA must face a lawsuit seeking to void a controversial financing that has roiled the $1.2 trillion leveraged loan market, after a New York state judge denied a bid to throw out the case.
Lenders to the food services company, including BlueMountain, Z Capital Credit Partners and Golub Capital Partners, sued TriMark in November alleging that its new debt violated the terms of its borrowing agreements and allowed a group of other lenders to take priority over them. The loan in question allowed a handful of investors that gave fresh money to the company to jump ahead of other lenders in the repayment pecking order.