Category Archives: Commentary

Perils of Paulson

Henry Paulson and Ben Bernanke may be escaping from the precipice of one horrific calamity, only to be breathing a sigh of relief just as an even worse catastrophe looms. The plan to buy distressed mortgage related assets and derivative … Continue reading

Posted in Commentary, credit default swaps

More on Hedge Funds and the U.S. Bankruptcy Process

Bear Stearns Funds The denial of recognition under Chapter 15 of the Bankruptcy Code of the Cayman Islands liquidations of the Bear Stearns High-Grade Structured Credit Strategies Master Fund and the Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage Master … Continue reading

Posted in Bankruptcy, Chapter 15, Commentary, Rule 2019

The Secretive Nature of Hedge Funds vs. the Open, Public Process of Bankruptcy in the U.S. – An Update

Judge Robert Gerber of the U.S. Bankruptcy Court for the Southern District of New York signed an order yesterday dismissing the Chapter 15 case of Basis Yield Alpha Fund. The dismissal was made at the request of the Cayman Island … Continue reading

Posted in Bankruptcy, Basis Capital, Commentary, credit default swaps | 1 Comment

Court: Fairness Opinions Are Not Insurance Policies

Just in time for the current business cycle downturn comes an important decision, whose genesis lies at the heart of the previous one. In a recently issued opinion, the U.S. Court of Appeals for the Seventh Circuit determined that an … Continue reading

Posted in Commentary, Fairness Opinions, Investment Banks

A Big MAC (cont’d): Solutia and its Lenders Step Back From the Abyss

Solutia and the lenders that committed to fund its exit from Chapter 11 have reached a settlement. After making some changes to the financing terms, the lenders, led by Citigroup, have agreed to drop their contention that a material adverse … Continue reading

Posted in Bankruptcy, Commentary, loan syndication, Solutia

A Big MAC

Yes, the leveraged loan market is highly troubled right now. But has it changed so dramatically from this past late October as to justify a failure to fund a loan commitment made at that time? This is the $2 billion … Continue reading

Posted in Bankruptcy, Commentary, loan syndication, Solutia

Hedge Fund Seeks to Stop Countrywide Merger

SRM Global Fund, founded by Jonathon Wood, is seeking to stop the merger between Bank of America (BAC) and Countrywide Financial (CFC). In a statement released by SRM, a company spokesperson said: “We strongly believe that the terms of the … Continue reading

Posted in Bank of America, Commentary, Countrywide