Friday, 25 July 2014
Last updated 18 min ago
Jul 5 2012 | 12:08pm ET
Fletcher Asset Management has taken to the U.S. courts to block the liquidation of one of his hedge funds.
The New York-based firm filed for bankruptcy protection for its Fletcher International on June 29 and then, on Monday, asked U.S. Bankruptcy Court in Manhattan to prevent liquidators, appointed by a Cayman Islands court, from selling its ssets.
Fletcher has appealed the Cayman Islands decision.
The liquidator, Ernst & Young, was appointed in April after a Cayman Islands judge approved a winding-up petition filed by three Louisiana public pension funds. Those pensions moved in January to have the Fletcher fund liquidated after almost a year of negotiations with the hedge fund that followed a July 2011 redemption request that was filled by promissory notes.
The pension funds had invested $100 million in Fletcher, but the Caymans judge ruled that the hedge fund was insolvent. In its U.S. bankruptcy filing, Fletcher International listed assets of $52.5 million and liabilities of $23.8 million. The hedge fund also said that Credit Suisse Group is refusing to return $1.66 million of its money.
According to Fletcher, Ernst & Young's decision to file a winding-up petition in Bermuda is an effort "to make an end run around the New York court."
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…