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The Wall Street Journal reported on the last showdown in a legal battle between Windstream Holdings Inc., an internet service provider, and Aurelius Capital Management LP, a hedge fund that invested in bonds issued by a Windstream subsidiary, took place on Tuesday, in a case that is being widely followed by bankruptcy lawyers and distressed-debt investors because it involves the issue of technical defaults.  “Certain huge hedge funds play in the business of trolling the documents to see if there are technical defaults, building up a position in the securities and credit default swaps, and then pouncing on the issuer for a significant return,” said New York Principal H. Jeffrey Schwartz.

The full article can be found here.

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