Bear Liquidators Seek Bankruptcy Extension

Sep 25 2007 | 7:59am ET

The liquidators of two failed Bear Stearns hedge funds have marshaled their arguments against seeking bankruptcy protection, telling the judge that ordered them to do so that it would hurt creditors.

KPMG’s Simon Lovell Clayton Whicker and Kristen Beighton told U.S. Bankruptcy Judge Burton Lifland—who on Aug. 30 rejected their Chapter 15 bankruptcy filing, which would have allowed the funds to liquidate in the Cayman Islands, where they are registered—that a Chapter 11 or Chapter 7 filing are “not viable options.”

According to a Friday filing, creditors of the Bear Stearns High-Grade Structured Credit Strategies Fund are in line to receive about $25 million, while those of the Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage Fund may get $50 million, but legal costs associated with Chapter 11 or Chapter 7 bankruptcy would eat up some of those funds.

Lifland had ordered the liquidators to seek Chapter 11 or Chapter 7 protection by Sept. 29, after which creditors will be permitted to seize the funds’ assets. Whicker and Beighton have appealed his decision and asked him to extend the restraining order until a federal appeals court judge can review his ruling.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Controlling With Confidence: A ‘How-To’ For Hedge Fund Managers

Dec 22 2014 | 11:52am ET

Hedge funds are increasingly turning to third party services to help with operations...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.