Beneficient shares surged approximately 194% on Wednesday after the financial services firm proposed a restructuring targeting about $130 million in disputed principal and accrued interest allegedly owed to HCLP Nominees. The company characterizes the obligations as fraudulent and unenforceable. The proposal would also address roughly $850 million in Heppner-connected equity interests by exchanging them for 162,132 Class A common shares, void approximately $88 million in disputed contractual claims and cancel Heppner’s remaining Class B shares, super-voting rights, board appointment authority and consent powers. Beneficient is seeking a negotiated settlement before Heppner’s October 21 sentencing date but has not signed a binding definitive agreement. If negotiations fail, the company said it is prepared to pursue available legal remedies against Heppner and affiliated entities. The rally followed premarket gains of more than 250%, although the stock remains highly volatile and thinly traded, with operating losses, limited cash and capital-raising needs still presenting challenges. Chief Executive Officer James G. Silk has said separating Beneficient from Heppner’s misconduct is necessary to protect the company and unlock shareholder value.