(Bloomberg) -- Sweden’s Intrum AB said its bid to settle a debt restructuring dispute with a minority group of noteholders has failed to win the support of creditors that had backed the proposals months ago.

The debt collector will now ask the US bankruptcy court in Texas to approve its pre-packaged Chapter 11 filing, Intrum said in a statement on Tuesday.

The company told the court Monday that it had “come to terms” with a group of holders of 2025 bonds that were objecting to the Chapter 11, but that it needed the consent of creditors that had already agreed to the original terms of the restructuring plan. 

Intrum filed for bankruptcy in Texas in November after its operations were hit by soaring bad loans as interest-rates rose. The company reached a deal to restructure its 58.4 billion krona ($4.2 billion) debt pile earlier this year with the support of 82% of its creditors. 

The holdout group objected to the deal, asking to have a treatment more similar to that of the 2024 bonds, which were fully repaid. 

Benjamin Finestone, a lawyer for the 2025 noteholders, confirmed during Tuesday proceedings that the majority group opposed the latest deal. The result of the negotiations was communicated with parties just a few hours before the hearing started, Intrum attorney Andrew M. Leblanc said.

The improved terms for the holdout group had mostly to do with fees, according to people familiar with the matter, who asked not to be identified discussing private information. A spokesperson for Intrum declined to comment.

While going ahead with filing for Chapter 11 to get its plan approved, the company continued holding conversations with the dissenting group to see if an agreement could be found, Bloomberg reported previously. 

Tuesday’s hearing will focus on hearing the 2025 noteholder group’s request to dismiss the Chapter 11 case. If the judge sides with Intrum, a restructuring plan would be confirmed.

The case is Intrum AB, 24-90575, US Bankruptcy Court, Southern District of Texas.

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