In an oral ruling, Judge Christopher Lopez denied motions to dismiss three claims challenging Trinseo’s 2023 and 2025 liability management transactions, preserving potential paths to disallow, recharacterize or subordinate intercompany and RCF claims. The court dismissed a fourth equitable-subordination claim with leave to amend and rejected the debtors’ attempt to stay the minority group’s intercompany claim objection.
The CastleKnight-led group of excluded Trinseo OpCo lenders, represented by Pallas Partners, survived a potentially case-dispositive challenge to its lawsuit Thursday, 30 July, after Judge Lopez declined to dismiss three counts attacking the company’s 2023 and 2025 liability management transactions.
In two bench rulings, Judge Lopez denied the debtor and senior secured creditor defendants’ motion for judgment on the pleadings as to Counts I, II and III of the minority ad hoc group’s first amended complaint and granted it as to Count IV without prejudice. The excluded lenders have seven days to amend Count IV.
Judge Lopez separately denied the debtors’ motion to enforce the automatic stay against Counts I and IV and reserved the stay analysis for Counts II and III until trial.
The decision preserves the excluded lenders’ principal routes to improving their position in the OpCo capital...
