Prosecutors Scoff At Hedge Funds' GM Fees Request

Oct 15 2013 | 12:44pm ET

Four hedge funds' settlement with creditors of the former General Motors was anything but an altruistic deal to end "contentious, time-consuming and expensive litigation," federal prosecutors say.

The U.S. Attorney's Office in Manhattan has objected to the hedge funds' request for $1.5 million from the "old GM" estate to cover their legal fees. The prosecutors wrote that, far from making a "substantial contribution" to that estate, "they took self-interested steps to seek an advantageous resolution of their disputes with the estate."

The hedge funds, including Elliott Management, Fortress Investment Group and Paulson & Co., agreed to drop $1.13 billion in claims against old GM. But in exchange, they got to keep $367 million they received from GM Canada in 2009 and $50 million from the "new" GM, created in the wake of the company's bankruptcy and bailout by the federal government, in addition to more than $2 billion in outstanding claims against old GM.

A federal bankruptcy court will consider the hedge funds' request on Oct. 21.


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

A Hard Look At Your ‘Soft’ Hedge Fund Marketing Information

Dec 8 2016 | 9:03pm ET

Conventional wisdom holds that due diligence examines quantitative as well as qualitative...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR