Saturday, 6 February 2016
Last updated 1 day ago
Oct 4 2013 | 12:02pm ET
The four hedge funds that won $50 million from General Motors as part of a settlement this week now want an extra $1.5 million from the former GM.
Elliott Management, Fortress Investment Group and Paulson & Co. on Wednesday said they want to be paid for making the deal, one which ended "contentious, time-consuming and expensive litigation that stood as one of the last remaining obstacles to bringing these Chapter 11 cases to a close." They feel, the firms' lawyers wrote, they are entitled to a portion of their professional fees for the "substantial contributions" they made.
The four funds dropped some $1.3 billion in claims against the estate of "old GM" in exchange for the trust representing its unsecured creditors dropping their lawsuit against them. The suit sought to force the hedge funds to turn over $367 million they received in 2009 as part of a deal to keep GM Canada out of bankruptcy.
The professional fee request was part of that agreement, the hedge funds said, noting that the deal will save "millions in attorneys' fees and expenses."