Wednesday, 27 August 2014
Last updated 9 hours ago
Apr 4 2008 | 11:18am ET
Hedge fund Appaloosa Management has sent Detroit into crisis mode, moving to pull out its $2.55 billion investment agreement with Delphi Corp.
New York-based Appaloosa, which led a six-member group that had agreed to provide a big chunk of the $6.1 billion that Delphi needs to exit bankruptcy protection, accused the auto parts maker of violating several tenets of its agreement, including “reaching agreements with [former parent General Motors] that are materially inconsistent with the agreement and the plan.” A GM affiliate had stepped in and agreed to play a larger role in the company’s exit financing after the credit crisis left Delphi short of the capital it needed.
Appaloosa, which revealed its exit from the deal in a termination letter filed today with the Securities and Exchange Commission, said its group would consider helping Delphi “in a capacity different than currently envisioned by the agreement.” But it also said it intended to seek an $82.5 million “alternative transaction fee” from the company for its alleged failure to live up to the terms of the agreement.
For its part, Delphi could sue Appaloosa for as much as $250 million in termination penalties.
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…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...