Hedge Funds Delay Depositions In WaMu Bankruptcy

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.


In Depth

Humble in Hofstra...One Debate an Election Can Make

Sep 26 2016 | 10:20am ET

Tonight's U.S. Presidential debate, infamously coined the “Humbling in Hofstra...

Lifestyle

Vortic: Reimagining the Custom Wristwatch

Sep 27 2016 | 7:24pm ET

American watch manufacturer Vortic, which started out restoring antique pocket watch...

Guest Contributor

Malik: The Ever-Changing Middle Market and The Entering Class of 2016

Sep 2 2016 | 5:01pm ET

Deal sourcing and origination is only going to get more competitive given current...