The Bottom Line™:

• Defendants have filed motions to dismiss the New York complaint filed last year by minority holders of Selecta’s former first lien notes.
• We discuss the key arguments raised by Selecta and the co-op agreement defendants, including their responses to the antitrust claims and the English law minority protection principle claims.

Overview

Swiss vending machine company Selecta undertook a particularly aggressive liability management transaction in 2025, prompting litigation in the United States District Court for the Southern District of New York by minority bondholders Deltroit, CQS, Algebris, and others.
The complaint raised claims against Selecta Group B.V. and a number of entities within the wider Selecta group (collectively, the “Selecta Defendants”), a group of investors, including Invesco, Man Group, and SVP, who were parties to a cooperation agreement in connection with the restructuring (the “Co-op Defendants”), and certain Selecta directors.