Sunday, 21 December 2014
Last updated 6 hours ago
May 29 2008 | 2:00am ET
Hedge fund Appaloosa Management may have more than just a bankrupt auto parts maker to deal with.
Unsecured creditors of Delphi Corp. have asked a judge to allow them to intervene in Delphi’s $2.55 billion lawsuit against an investor group led by Appaloosa. Should the U.S. Bankruptcy Court in New York approve their request, the creditors would have the right to participate in discovery and any settlement talks.
Delphi’s lawsuit arose from the Appaloosa group’s decision to back out of a $2.55 billion financing deal for Delphi, which would have allowed the company to exit bankruptcy. Appaloosa alleges that Delphi violated several tenets of its agreement, while the company says the investors simply decided they no longer liked the deal.
“Because of the failure to provide the agreed-upon investment financing, distributions that should have been made to creditors pursuant to the plan have not been made,” the creditors’ committee said in the court papers, filed Tuesday. It explained that it must “protect vigorously the interests of its constituency,” and that creditors would have “directly benefited” from the Appaloosa deal.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
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.