Friday, 9 October 2015
Last updated 7 hours ago
Nov 19 2013 | 10:25am ET
The demise of his hedge fund could have dire personal financial consequences for FX Concepts founder John Taylor.
FX Concepts filed for bankruptcy last month and plans to liquidate its assets, including its intellectual property. And while that would normally be the end of the story, even if there wasn't enough money to repay creditors, in this case, it isn't.
That's because Taylor was forced to personally guarantee a piece of FX's loans from Credit Suisse's Asset Management Finance division. FX owes AMF $34.4 million, according to Hedge Fund Alert, and Taylor is personally responsible for $5 million.
The revelation indicates that the 25-year-old one-time currency hedge fund giant was in worse shape for longer than initially believed. AMF demanded the personal guarantee from Taylor when he renegotiated two revenue-sharing deals FX had with AMF in exchange for deferring eight quarterly payments.
Court documents show that FX is unlikely to be able to meet all of its obligations, which may explain why Taylor put his new Manhattan apartment on the market in September for $25 million.
Oct 7 2015 | 4:57am ET
Charity A Leg To Stand On (ALTSO) will hold its 12th Annual Hedge Fund Rocktoberfest – NYC on October 15 and its 4th Annual Rocktoberfest - Chicago on October 22. Read more…