Monday, 4 May 2015
Last updated 9 hours ago
Jun 9 2011 | 1:03pm ET
Bankrupt hedge fund GSC Group has formalized a restructuring plan to sell its assets to another hedge fund.
GSC's Chapter 11 trustee, James Garrity, filed the deal—in the works since an October auction—in federal bankruptcy court. Under the plan, which Garrity called "the best available outcome" for GSC creditors, Black Diamond Capital Management, which won the October auction, would take over what's left of GSC in two deals.
The first involves Black Diamond, GSC's lead lender, forgiving $224 million in secured debt and giving GSC a $6.7 million promissory note and $5 million in cash for GSC's investment-management business. The second involves lenders forgiving the rest of the debt for the rest of GSC's business.
The two deals will leave $18.6 million to cover legal fees and pay back creditors.
Garrity's move seeks to preempt a rival plan put forward by secured creditors that would have wiped out unsecured creditors. Garrity's plan leaves about $4.6 million for the latter group.
"Were their support to evaporate, which could happen all too suddenly," Garrity said of the secured creditors under the rival plan, "it could spell disaster for the estates and would almost certainly preclude the trustee from fashioning an exit strategy for the debtors that could yield a distribution to unsecured creditors."
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…