Friday, 24 October 2014
Last updated 15 hours ago
Dec 1 2008 | 2:05am ET
Just days before announcing that it would liquidate a fixed-income hedge fund, Parkcentral Capital Management defaulted on a margin call, according to a lawsuit filed by JPMorgan Chase.
The bank accused the Plano, Texas-based firm, which primarily manages money for the family of former U.S. presidential candidate H. Ross Perot, of defaulting on a Nov. 20 demand that it provide $125 million in eligible credit support as collateral on derivative contracts. It says it is owed as much as $753 million in collateral based on an early-termination agreement.
JPMorgan claims it hand-delivered three notices of default to Parkcentral. The lawsuit was filed in New York state court.
“By failing to perform its obligations under the master agreement, including its obligation to pay to JPMorgan the amount owing under the master agreement, Parkcentral has materially breached” that agreement,” JPMorgan alleges in the Nov. 26 suit.
Last week, Parkcentral told investors it was liquidating its six-year-old Parkcentral Global Hub Fund to pay off creditors. The $1.5 billion fund, which is down as much as 40% this year, is “no longer viable,” the firm said.
Sep 22 2014 | 4:15pm ET
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