Monday, 20 October 2014
Last updated 3 hours ago
Apr 5 2011 | 11:24am ET
Energy Future Holdings Corp., the Kohlberg Kravis Roberts- and TPG Capital-owned energy company accused of being in default by another hedge fund, has turned to its creditors to resolve that claim.
EFH has offered better terms to creditors who accept some concessions, including an affirmation that EFH did nothing wrong when it borrowed from a subsidiary. Hedge fund Aurelius Capital Management, a creditor of the subsidiary, alleges that it did, in fact, do something wrong, borrowing at unfairly favorable rates, and is therefore in default on nearly $24 billion in loans.
EFH angrily denied that claim and said that, "based on private negotiations," at least 50% of its creditors were prepared to accept that the loans were made on an "arms-length basis," as well as a longer payment schedule. In exchange, EFH is offering a half-point increase of their coupon.
"The company has shifted from dismissing our claims to paying the banks to waive them," Aurelius' Mark Brodsky said. "What we have learned in the interim confirms our view that an event of default has occurred."
EFH continued to deny that allegation. "We refute those claims," a spokeswoman for the company said. "We will continue to defend ourselves vigorously against those claims and any similar allegations, and this portion of the amendment would put those claims to rest once and for all."
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...