Beneficient moves to void ~$130M HCLP debt, recover $211M paid, citing Heppner fraud conviction

Beneficient

• Filed motion to intervene Oct 23, 2026 in Delaware Chancery suit HCLP Nominees v. Delaware Trust Company; proposed complaint seeks to invalidate HCLP credit agreements and cancel obligations.
• Success would eliminate roughly $130 million of purported HCLP debt, leaving the company with an unleveraged balance sheet; it also seeks return of ~$211 million already paid on the debt.
• Complaint draws on ex-CEO Brad Heppner's criminal trial evidence; convicted May 2026 of securities fraud and wire fraud, with sentencing rescheduled to January 11, 2027.
• Company is still pursuing a consensual resolution covering Heppner's remaining equity and governance interests and termination of contracts with his affiliates; no definitive agreement reached.
• CEO James G. Silk said Heppner's fraud "should not continue to burden Beneficient and its stockholders"; relief depends on the Court granting intervention.