Beneficient targets elimination of disputed $130 million debt in proposed settlement

Beneficient outlined a strategy to eliminate about $130 million of contested HCLP debt, including principal and accrued interest.

The proposed resolution would convert Heppner Equity Interests, including $850 million liquidation-preference preferred equity, into 162,132 Class A shares.

The plan also targets termination of Heppner-related agreements, seeking to extinguish about $88 million of purported obligations without payment.

The company said it aims to complete a consensual deal before Brad Heppner’s Oct. 21, 2026 sentencing, but no definitive agreement is in place.