Friday, 29 July 2016
Last updated 6 hours ago
May 13 2011 | 12:21pm ET
Four hedge funds that had a hand in the Washington Mutual bankruptcy have angrily denied allegations that they traded the defunct bank's shares using confidential information. But most of them seem less-than-interested in being deposed about it.
Executives of Appaloosa Management and Centerbridge Capital Partners have again delayed scheduled depositions—for the third time, the Puget Sound Business Journal reports. The Appaloosa representative, originally scheduled to be deposed in March, won't have to talk to lawyers for WaMu stockholders until May 26. Centerbridge, which was to face the deposition today, will also now do so on May 26.
Barring, of course, further delays.
Shareholders won the right to question the hedge funds, which signed on to WaMu's Chapter 11 bankruptcy plan but refused to renew their support earlier this year, about their trading in WaMu securities; some claim the funds used confidential information they learned during the creation of WaMu's reorganization plan. WaMu sold its banking business to JPMorgan Chase in 2008 after federal regulators seized it.
The shareholders have questioned at least one hedge fund official: A representative of Aurelius Capital Management was deposed last week. Owl Creek Asset Management's deposition is currently scheduled for next week.