Tuesday, 23 September 2014
Last updated 9 hours ago
Oct 1 2013 | 9:58am ET
Hedge funds and some other creditors of the former General Motors have struck a deal over a $367 million payout to the funds in 2009.
A trust representing "old" GM's unsecured creditors, the successor to Motors Liquidation Co., agreed to drop their lawsuit against the funds in exchange for those funds dropping $1.13 billion in claims against the old GM estate. The four hedge funds include Elliott Management, Fortress Investment Group and Paulson & Co.; Appaloosa Management and Aurelius Capital Management, which took part in the 2009 deal, sold their bonds and were not involved in the litigation.
In addition to getting to keep the $367 million, the hedge funds also received $50 million from the "new" GM.
The 2009 deal was designed to keep GM Canada out of bankruptcy. GM Canada borrowed the money from old GM and then paid the hedge funds. The trust argued that the deal should have been canceled under bankruptcy law.
The settlement goes before a federal bankruptcy judge on Oct. 21.
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 McKitich, CIO of Petty 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…
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.