Wednesday, March 30, 2016

Report: Hedge Fund Manager Would Profit If iHM Filed For Bankruptcy

Hedge fund mogul Paul Singer bought an insurance policy on iHeartMedia’s debt — while working hard to push the radio operator into default, legal papers filed by iHeart in a Texas state court allege.

The New York Post is reporting iHM filed papers in a Texas courthouse against Singer’s Elliott Management, claiming the distressed debt investor bought credit default swaps as it was planning, with other debt holders, to file a March 7 notice of default.

Paul Singer
Singer would have been in position to profit handsomely if iHeart went into default — one possible step away from Chapter 11 — because holders of CDSs get paid in full if a company files for bankruptcy.

“I would not want to be Elliott right now,” an iHeart creditor told The Post. “It certainly looks bad.”

iHeart has asked the court to look into the allegations concerning Elliott’s conduct.

Meanwhile, the same San Antonio court on Monday will decide whether to grant the highly leveraged iHeart a permanent injunction against the creditors’ notice of default.

No comments:

Post a Comment