Incora’s proposed DIP financing draws objection from noteholder

By Sarah Lizee

Olympia, Wash., July 10 – Wesco Aircraft Holdings, Inc.’s (Incora) proposed $300 million debtor-in-possession note facility drew an objection from Langur Maize, LLC, the holder of a majority of the company’s 12 1/8% senior notes due 2027, according to documents filed Monday with the U.S. Bankruptcy Court for the Southern District of Texas.

The financing is being provided by the company’s 2026 first-lien noteholders. Wilmington Savings Fund, FSB is the DIP agent.

Langur Maize said the final DIP order would make proceeds of avoidance actions subject to liens and super-priority claims in favor of the first-lien noteholders group and prepetition 1.25-lien secured parties, which would be unfair to unsecured creditors.

The first-lien noteholder group and 1.25-lien secured parties, both of whom would be beneficiaries of super-priority claims that could be satisfied using proceeds of avoidance actions under the final DIP order, are the same parties against whom avoidance actions will likely be asserted, Langur Maize said.

The parties are defendants in two distinct New York state court actions that allege insider preference and fraudulent transfer claims in connection with two separate prepetition exchange transactions.

Langur Maize said these avoidance claims now belong to the estate and represent assets that might be the most significant source of recovery for unsecured creditors.

“Allowing recoveries from these claims to potentially be swallowed up through DIP or adequate protection liens or super-priority claims by the very same defendants who may be contributing these recoveries on account of their prepetition receipt of preferential or fraudulent transfers is clearly unjust,” the noteholder said.

Based in Fort Worth, Incora is a provider of comprehensive supply chain management services to the global aerospace and other industries. The company filed bankruptcy on June 1 under Chapter 11 case number 23-90611.

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