Beneficient seeks court ruling to cancel $130 million in disputed HCLP debt
BENF•Beneficient filed a motion to intervene in Delaware Chancery Court litigation, seeking to invalidate HCLP credit agreements, eliminate about $130 million in disputed debt and recover about $211 million previously paid.
1. Disputed debt filing
Beneficient filed an October 23, 2026, motion to intervene in Delaware Chancery Court litigation, seeking to invalidate HCLP credit agreements. Its proposed complaint alleges former CEO Brad Heppner fabricated debt obligations and concealed his control of HCLP through false representations and falsified documents.
2. Potential resolution
Beneficient says successful litigation would leave it with an unleveraged balance sheet, but no definitive agreement on a consensual resolution has been reached. Heppner was convicted in May 2026 of securities fraud, wire fraud and related offenses, and is scheduled to be sentenced on January 11, 2027.
