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Komfie Manalo, Opalesque Asia:

Greenwich, Connecticut-based hedge fund firm Marblegate Asset Management has welcomed the decision by U.S. District Judge Katherine Polk Failla in Manhattan to deny an injunction against a deal that will wipe out a majority of Education Management Corp.'s (EDMC) debt.

In a statement sent to Opalesque, Marblegate said that while Failla denied their request for injunctive relief, she also indicated that the hedge fund might succeed on its claims against the for-profit education system.

Marblegate said in the statement, "We are pleased with Judge Failla's ruling and full opinion, the details of which we expect will be publicly available in the coming weeks. As set forth in Education Management Corporation’s (EMDC) press release, although the Court denied injunctive relief, it did preliminarily find that Marblegate, as a plaintiff, is likely to succeed on its claims asserted under the Trust Indenture Act."

On Monday, Failla denied a request by Marblegate and Magnolia Road Capital for a preliminary injunction against the said deal. In his ruling, Failla rejected the petition by Magnolia Road and Marblegate against EDMC.

The two hedge funds own $20m of the estimated $1.1bn EDMC debt. But EDMC has entered into a deal with majority of its creditors to convert the debt into a majority stake ......................

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