Incora’s Disputed Debt Deal Didn’t Breach Contracts, Judge Rules

A Texas federal judge ruled that aerospace supplier Incora didn’t breach existing debt agreements when it completed a $250 million transaction that elevated one group of bondholders’ status over another.

An indenture agreement for notes due in 2026 didn’t forbid a March 2022 transaction because it included provisions that were consistent with how the 2022 deal was completed, according to a Monday order from the US District Court for the Southern District of Texas. The 2022 transaction allowed for additional 2026 notes to be issued.

The district court “refuses to find any implied sacred rights” for the indenture, Judge Randy ...