Post by Catdaddy on Mar 10, 2007 15:53:14 GMT -5
john3339
DIAMOND JEDI
Squeeze gently .............................. but PAY BIG!
Member Info
Status: online
Joined: Nov 2005
Gender: Male
Posts: 633
Location: Fairfax, VA
Karma: 12
Hedge funds want records closed? Gee wonder why?
« Thread Started on Today at 15:47 »
Northwest bankruptcy case judge orders funds' data
Fri Mar 9, 2007 6:21pm ET
Time: 3:59pm ET
Northwest bankruptcy case judge orders funds' data
NEW YORK, March 9 (Reuters) - The federal judge overseeing the bankruptcy of Northwest Airlines Corp. (NWACQ.PK: Quote, Profile , Research) denied a request on Friday by a group of hedge funds that wanted to keep trading data secret.
A group of 13 funds, including Owl Creek Asset Management, Citadel Investment Corp., Marathon Asset Management and Sandell Asset Management, control about 27 percent of Northwest's shares. Those shares are to be canceled when the airline exits bankruptcy later this year.
The funds, which sought to establish an ad hoc shareholders' committee in Northwest's bankruptcy process, had argued the equity has value and should not be canceled.
As part of the process of seeking court approval for the ad hoc group, the hedge funds were asked to disclose not only their holdings in the airline, but at what prices they bought the securities.
The funds argued that the information was irrelevant to the case and confidential because it would reveal their investment strategies.
"This improbable contention was unsupported," Judge Allan Gropper said in an order. "It cannot harm the legitimate interests of members of an ad hoc committee to put pricing information on the table."
Northwest shares, delisted as part of entering Chapter 11 in September 2005, have traded at unusually high levels for a bankrupt company, but they have recently come off. The shares traded as high as $7.50 on Jan. 16. They closed at $1.11 on Friday.
Commentary: Hedge funds want strategies kept secret? HAH! Probably because a chief strategy is to naked short ill companies to death. and now that NW Airlines is coming back from the dead, they're scared to death, and want nothing to do with transparency...like How did NW come to be in bankruptcy in the first place?
If their books open up, I wonder how many naked shorted companies will fall out (CMKM Diamonds, Overstock, Martha Stewart?)?
Notice the bolded last paragraph...how they traded at unusually high levels for a bankrupt company. Called cellar-boxing. Get the company down and go in for the kill. But NW didn't die...just like CMKX didn't die.
Bad year to be a hedge fund imo.
Die you hedge hogs! Open your books and let the world see just what you're all about. and while you're at it, let's see just who some of the major investors are. Anyone from Capital Hill, like the head of the Senate Banking Committee maybe? Like maybe some former SEC officials?
Talk about something that would make for great reading!
imo
john
DIAMOND JEDI
Squeeze gently .............................. but PAY BIG!
Member Info
Status: online
Joined: Nov 2005
Gender: Male
Posts: 633
Location: Fairfax, VA
Karma: 12
Hedge funds want records closed? Gee wonder why?
« Thread Started on Today at 15:47 »
Northwest bankruptcy case judge orders funds' data
Fri Mar 9, 2007 6:21pm ET
Time: 3:59pm ET
Northwest bankruptcy case judge orders funds' data
NEW YORK, March 9 (Reuters) - The federal judge overseeing the bankruptcy of Northwest Airlines Corp. (NWACQ.PK: Quote, Profile , Research) denied a request on Friday by a group of hedge funds that wanted to keep trading data secret.
A group of 13 funds, including Owl Creek Asset Management, Citadel Investment Corp., Marathon Asset Management and Sandell Asset Management, control about 27 percent of Northwest's shares. Those shares are to be canceled when the airline exits bankruptcy later this year.
The funds, which sought to establish an ad hoc shareholders' committee in Northwest's bankruptcy process, had argued the equity has value and should not be canceled.
As part of the process of seeking court approval for the ad hoc group, the hedge funds were asked to disclose not only their holdings in the airline, but at what prices they bought the securities.
The funds argued that the information was irrelevant to the case and confidential because it would reveal their investment strategies.
"This improbable contention was unsupported," Judge Allan Gropper said in an order. "It cannot harm the legitimate interests of members of an ad hoc committee to put pricing information on the table."
Northwest shares, delisted as part of entering Chapter 11 in September 2005, have traded at unusually high levels for a bankrupt company, but they have recently come off. The shares traded as high as $7.50 on Jan. 16. They closed at $1.11 on Friday.
Commentary: Hedge funds want strategies kept secret? HAH! Probably because a chief strategy is to naked short ill companies to death. and now that NW Airlines is coming back from the dead, they're scared to death, and want nothing to do with transparency...like How did NW come to be in bankruptcy in the first place?
If their books open up, I wonder how many naked shorted companies will fall out (CMKM Diamonds, Overstock, Martha Stewart?)?
Notice the bolded last paragraph...how they traded at unusually high levels for a bankrupt company. Called cellar-boxing. Get the company down and go in for the kill. But NW didn't die...just like CMKX didn't die.
Bad year to be a hedge fund imo.
Die you hedge hogs! Open your books and let the world see just what you're all about. and while you're at it, let's see just who some of the major investors are. Anyone from Capital Hill, like the head of the Senate Banking Committee maybe? Like maybe some former SEC officials?
Talk about something that would make for great reading!
imo
john
