Wednesday, 1 October 2014
Last updated 41 min ago
Aug 22 2008 | 11:05am ET
Delphi Corp. has a second hedge fund thorn in its side.
The bankrupt auto-parts maker, which is suing a group led by Appaloosa Management over a failed investment deal, finds that Appaloosa is not the only hedge fund that objects to it borrowing more from former parent General Motors Corp. Highland Capital Management, among the company’s bondholders, has asked the U.S. Bankruptcy Court in Manhattan to prevent Delphi from borrowing another $300 million from GM.
In court papers, Highland, which is backed by CR Intrinsic Investors, led by Steven Cohen of SAC Capital Advisors fame, said that Delphi’s North American operations “continue to lose staggering sums of money, and drag down the rest of the business.”
“The Debtor’s continued willingness to operate a money-losing business that burns cash for the benefit of GM is beyond comprehension,” Highland said.
Earlier this month, GM agreed to increase its total loan to Delphi to $950 million to keep a key parts supplier liquid. The greater involvement of GM in Delphi’s exit from bankruptcy also led Appaloosa to bail on its $2.55 billion investment deal, which would have allowed Delphi to exit bankruptcy protection.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
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