Friday, 22 August 2014
Last updated 23 min ago
Jan 11 2010 | 2:49am ET
Score another court victory for the Avenue Capital Group-led Six Flags secured creditors steering committee against a group of unsecured creditors, led by fellow hedge fund Stark Investments.
A Delaware bankruptcy court judge rejected a bid by Stark and its fellow junior noteholders to have Avenue disclose its holdings, ruling that the Avenue group does not have to reveal just how many Six Flags bonds they own.
“The law contemplates a subset of a larger group authorized by the larger group to act on its behalf,” Judge Christopher Sontchi ruled. “That is not the case here.”
“I don’t think ad hoc committees are subject” to the law in question, which requires disclosures by committees in a bankruptcy case, he said.
Avenue and its fellow committee members argued that any disclosure would unnecessarily reveal their trading strategies.
Six Flags said last week that it could emerge from bankruptcy as soon as March. Under its current reorganization plan, which requires court approval, Avenue would gain control of the theme park operator as part of an $830 million financing deal.
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note