Wednesday, 1 October 2014
Last updated 32 min ago
Sep 22 2008 | 2:44am ET
A trio of hedge funds have lost their bid to block the sale of bankrupt Lehman Brothers Holdings’ North American investment banking group to Barclays.
Following an extraordinary, late-night hearing, U.S. Bankruptcy Judge James Peck gave the go-ahead to the $1.75 billion sale, which includes Lehman’s prime brokerage and its Manhattan headquarters. Three hedge fund creditors, led by Harbinger Capital Partners, had argued that the proceedings were moving too quickly, and that Lehman had failed to disclose cash transfers it made before filing for bankruptcy last Monday.
Judge Peck acknowledged that the circumstances were unusual. But he rejected the bids to block the sale, ruling that Lehman had nowhere else to turn.
“This is Friday; the case was filed on Monday,” Peck said at the hearing, which ended at 12:41 a.m. “What we’re doing is unheard of.”
“I need to approve this transaction because it’s the only available transaction,” he decided.
Harbinger had alleged a $5 billion cash transfer from Lehman’s London office occurred just prior to the bankruptcy filing, while Bay Harbour Management and Amber Capital alleged an $8 billion transfer. All three funds wanted the sale blocked until Lehman disclosed exactly what transfers were made.
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…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...