A creditor of Anthology Inc. has asked a Texas bankruptcy judge to reject the educational technology company's Chapter 11 plan, saying it doesn't provide for money Anthology owes for the creditor's defense against a suit launched by an Anthology affiliate.

In an objection filed Tuesday, creditor Vector Capital Credit argued its loan agreement with Anthology affiliate Astra Acquisition Corp. requires Anthology to set aside more than $7 million to pay for Vector's cost to defend itself from a New York state court suit filed by Astra, before any other debts are paid.

"Despite these express contract provisions, the plan does not recognize, classify, and fund these contractually senior indemnity and reimbursement obligations," Vector said.

Vector claims to hold $526.6 million in secured debt in the case, consisting of a revolving credit facility and term loans, and is a participant in Anthology's debtor-in-possession financing.

In April, Astra filed suit against Vector in New York state court, alleging Vector had breached its loan agreement by refusing to fund a requested draw on the revolving facility.

Anthology and its affiliates filed for Chapter 11 protections in September with $1.8 billion in debt and last month got permission to send an equity-swap reorganization plan out for a creditor vote.

In its Tuesday objection, Vector argued the loan agreement calls on Anthology to indemnify Vector for litigation costs. It said Anthology has claimed indemnification does not apply to litigation between the debtor and the lender, but Vector argued it "unambiguously" applies to any expenses it incurs enforcing its rights under the agreement.

"Those indemnity and reimbursement obligations are prioritized by the prepetition credit agreement's waterfall ahead of interest and principal, and were expressly preserved by the final DIP order for plan-treatment purposes," Vector said.

It argued the plan should fund a $7.3 million reserve to cover Vector's expenses in the New York case, including expert witness costs.

Counsel for the parties did not immediately respond to requests for comment Wednesday.

Vector is represented by Jed I. Bergman, Trevor J. Welch, Jonathan H. Friedman, Shai Schmidt, George L. Santiago, Esther Hong and Rich Ramirez of Glenn Agre Bergman & Fuentes LLP, and Ken Green, Aaron M. Guerrero and Bryan Prentice of Bonds Ellis Eppich Schafer Jones LLP.

Anthology and its affiliates are represented by Chad J. Husnick, Charles B. Sterrett and Melissa Mertz of Kirkland & Ellis LLP, and Charles A. Beckham Jr., Arsalan Muhammad, Kourtney Lyda, Re'Necia Sherald and Charles M. Jones II of Haynes Boone.

The case is In re: Anthology Inc., case number 4:25-bk-90498, in the U.S. Bankruptcy Court for the Southern District of Texas.