Hecate’s PE Creditors Sue for Theft Over Repsol Stake Buyout

Hecate Energy Group LLC’s founders stole millions from private equity lenders by excluding them from a settlement ending a buyout dispute with Repsol SA, an unsealed lawsuit says.

New Energy Capital Partners LLC affiliates are suing Hecate and a holding company controlled by its management, saying they’re “playing a shell game” with assets pledged as collateral after defaulting on an $82 million loan in four different ways. Most details of the legal accord with Repsol are redacted, including the size of the payment the founders allegedly steered to themselves.

They’re effectively holding the collateral hostage after realizing the Hecate ...