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U.S. judge tells hedge funds: You aren`t so special after all, Northwest Airline ruling enforces disclosure
From Bloomberg.com: Hedge funds with stakes in Northwest Airlines Corp. tried to persuade a bankruptcy judge they shouldn't have to disclose details of their financial interests like everyone else in the case. He wasn't impressed. The funds, including Owl Creek Management LP, Northwest's third-largest shareholder, claimed disclosure would reveal the funds' strategies to competitors. The group also argued that just as car dealers and home builders don't tell potential buyers their actual costs, the funds shouldn't have to disclose their investments.
U.S. Bankruptcy Judge Allan Gropper in New York dismissed the first argument as an ``improbable contention.'' As for the second, he said in his March 9 ruling, ``the committee members do not advance their position when they compare themselves to car or real estate salesmen.'' Gropper's ruling was a response to the unofficial group formed by the hedge funds to represent their interests in the bankrupt Eagan, Minnesota-based airline.
Barring a successful appeal, the ruling will force the hedge funds, which include Anchorage Capital LLC, Latigo Partners LP and Seneca Capital, to disclose the information or disband their group….Full article: Source
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