Tuesday, 1 December 2015
Last updated 13 hours ago
Sep 28 2011 | 10:44am ET
Four hedge funds involved in the crafting of Washington Mutual's bankruptcy plan have appealed a U.S. Bankruptcy Court's rejection of that plan.
The so-called "settlement noteholders," Appaloosa Management, Aurelius Capital Partners, Centerbridge Partners and Owl Creek Asset Management, were due billions of dollars under the plan presented by WaMu. The group has also appealed U.S. Bankruptcy Court Judge Mary Walrath's ruling that could pave the way for an insider-trading lawsuit against it.
Walrath put the plan on hold for a second time earlier this month, finding that the Chapter 11 plan proposed a higher interest rate than permissible and that WaMu's shareholders, who challenged the plan, had offered a "colorable" case that the hedge funds had violated insider-trading laws.
The judge did temporarily block any lawsuit against the hedge funds, ordering the parties to mediation.
The hedge funds yesterday asked Walrath's permission to appeal her ruling while that mediation is under way. In a court filing, a lawyer for Aurelius complained that allowing shareholders to sue it and the other hedge funds "radically distorts securities and bankruptcy law and inflicts a gross injustice."
The hedge funds have denied any wrongdoing during their involvement with the WaMu bankruptcy plan.
Oct 21 2015 | 10:41am ET
One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…