Wednesday, 22 October 2014
Last updated 17 hours ago
Feb 28 2013 | 10:57am ET
JPMorgan Chase says that the hedge funds behind MF Global Holdings' repayment plan aren't playing fair.
In a bankruptcy court filing Tuesday, the bank said that Cyrus Capital Partners, Knighthead Capital Management and Silver Point Capital are using a "pocket veto" to block its effort to recover nearly $1 billion it lent MF Global just before the futures brokerage collapsed. JPMorgan said the hedge funds are refusing to tell creditors what will happen if they vote "no" on their repayment plan, all but forcing them to vote "yes," even if that means claims will never be pursued.
"By denying information to voters about the result of a 'no' vote, the Creditor Co-Proponents are trying to unfairly influence the voting on the plan," JPMorgan wrote.
The bank is seeking permission to file a lawsuit of its own, going after $928 million of the $931 million it lent to MF Global in October 2011, just days before it filed for bankruptcy. MF Global quickly transferred the $928 million to a subsidiary, MF Global Finance USA, which JPMorgan says creates a claim of the subsidiary against the parent that is not being pursued.
Instead, JPMorgan complains, the hedge funds' plan double-counts the $928 million, diluting the possibility of recovery.
The hedge funds have argued that JPMorgan should be temporarily barred from suing, as such an action would delay repayment.
Hedge fund Aurelius Capital Partners is backing JPMorgan's bid.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...