Monday, 4 May 2015
Last updated 2 days ago
Mar 16 2011 | 1:10pm ET
Hedge fund New Stream Capital has filed for Chapter 11 bankruptcy protection.
The Ridgefield, Conn.-based firm won the support of the "vast majority" of its creditors to restructure its hundreds of millions of dollars in debt, Dow Jones Daily Bankruptcy Journal reports. The hedge fund also filed a Chapter 11 plan for the sale of its life-settlement portfolio, asking the federal Bankruptcy Court in Wilmington, Del., to consider the filings quickly.
The life-settlement portfolio would be sold to McKinsey & Co.'s MIO Partners for $127.5 million, unless another bidder appears with a higher offer.
New Stream, which has been preparing for a Chapter 11 filing for months and which has battled angry investors that sought to push it into involuntary bankruptcy to derail its own plans, said the bankruptcy filing was the result of "many months of negotiations" with its creditors, including its own feeder funds.
"Although many of the debtors' investors, primarily hedge funds and other sophisticated investors, will recover only a portion of their investment, the vast majority have agreed to accept the plan since the alternatives to confirmation are far less attractive," the firm said in its court filing.
All of the investors in New Stream's Bermuda fund, which has some $450 million in claims against the firm, have accepted the settlement, which about two-thirds of the investors in its Cayman Islands and U.S. funds, with $320 million in claims, did so. In December, the firm settled the Bermuda fund's claims with the promise of the $127.5 million it would raise from the sale to MIO.
That deal came just months after the troubled firm learned that its head of investor relations, Tara Bryson, had been arrested for running "a complex marijuana cultivation operation capable of producing a marijuana crop year-round." At the home of Bryson and her boyfriend in Newtown, Conn., police found some 200 pot plants and other weed-growing paraphernalia.
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…