Bondholders of Electronic Arts (EA) allege a default on $1.4 billion in debt following the company’s record-breaking leveraged buyout.
The dispute centers on whether EA must repay bondholders at a premium after being taken private in a $55 billion deal. The transaction was reportedly the largest leveraged buyout of all time.
Investors say they are entitled to a premium payout, a common bondholder protection when an acquisition is followed by a credit-rating downgrade tied to increased debt. The acquisition was completed in August 2026.