Good day and welcome to WSJ Pro Bankruptcy's Daily Briefing. It's Wednesday, May 13. In today's briefing, Paresh Raja and his collapsed mortgage lender, Market Financial Solutions, are facing a $1.8 billion creditor lawsuit and a worldwide asset freeze after bankruptcy administrators alleged the founder misappropriated approximately $550 million in borrowed funds from backers to finance a luxury lifestyle. And Multi-Color has successfully emerged from chapter 11 bankruptcy after a restructuring that eliminated nearly $3.8 billion in debt while retaining private-equity firm CD&R as its majority owner.

U.K. mortgage lender Market Financial Solutions left Barclays, HSBC and Apollo Global Management facing hundreds of millions of dollars in potential losses when it collapsed in February.

Now, bankruptcy administrators allege its owner, Paresh Raja, moved around $550 million of MFS-borrowed funds into personal bank accounts and then bought luxury cars including six Ferraris and three Rolls-Royces.

A spokeswoman for Raja said that he strongly denies the allegations and that there was no fraud or dishonesty. “Assets which the administrators characterize as missing were held through nominee structures for the benefit of MFS and its creditors,” the spokeswoman said, adding that the administrators had been given detailed information about those assets.

The stock market has lots of questions about private-credit funds, namely how much they’re really worth. Investors are having a tough time figuring out answers.

One reason: Even when investors know what’s in these funds, they quickly realize that they don’t know all that much. The result is that the funds often trade at discounts to their official net asset values. In that case, a dollar of assets ends up being worth less than a dollar.

Blue Owl Capital Corp. is an example. The publicly traded private-credit fund trades for just 78% of its reported NAV.

Label maker Multi-Color said Tuesday that it has emerged from chapter 11 bankruptcy, completing a restructuring that wipes nearly $3.8 billion in debt from its balance sheet.

The Atlanta-based company, which makes labels for Tide bottles and Maxwell House canisters, filed for Chapter 11 in January, aiming to swiftly restructure its debt under a plan backed by a majority group of creditors. Other lenders challenged the plan, contending that it unfairly favored its private-equity sponsor CD&R. 

In April, the company reached a settlement with creditors, securing overwhelming support to avoid the protracted legal battles. CD&R remains the majority owner following the restructuring.

The Trump administration said it would delay a plan to address high beef prices, which would have suspended tariffs on imported beef.

President Trump had planned to sign Monday a pair of executive orders to lower tariffs on beef and reduce regulations on American cattle producers. On Monday evening, a White House official said the actions had been delayed as the administration finalizes details.

Consumer prices rose 3.8% in April from a year earlier, a clear impact of higher gas prices since the start of the war with Iran.

The figures, reported Tuesday by the Labor Department, surpassed the previous month’s reported increase of 3.3%. Economists polled by The Wall Street Journal had expected inflation of 3.7%. The April increase was the highest in three years.

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