Beneficient (BENF) said Wednesday it has launched a strategy to eliminate HCLP debt and equity interests tied to former CEO Brad Heppner following his May federal fraud conviction.

The financial firm seeks a consensual resolution to cancel roughly $130 million in contested debt and void about $88 million in contractual obligations, it said.

The proposed separation plan also includes conversion and exchange of Heppner equity interests into Class A shares, Beneficient said.

Management plans to pursue all available legal remedies against the former executive and related entities if the parties fail to reach an acceptable agreement before his October sentencing, the company added.

Shares of the company were up roughly 327% in Wednesday trading.

Price: 2.30, Change: +1.76, Percent Change: +327.29