Tuesday, December 27, 2011

Hedge funds trying to buy up MF Global customer bankruptcy claims at a discount

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12/23/11, "Hedge funds and other financial firms looking to buy MF Global customers' bankruptcy claims," NY Post, Whitehouse

"Wall Street’s vultures are swooping in with offers to buy bankruptcy claims held by MF’s brokerage customers.

A slew of hedge funds, banks and other financial firms, including Longacre Fund Management, Elliott Management, Triax Capital Advisors and Contrarian Capital, have started contacting MF customers with offers to buy their claims for cashbut at a discount to their face value, The Post has learned.

Commonly referred to as “vulture investors” because they seek to profit off distressed situations like bankruptcies, these shops are seeking to buy the rights to money owed to MF customers in the aftermath of the firm’s Halloween bankruptcy....

Dan McCool, of Palm Beach Gardens, Fla., said he didn’t even bother to hear the bid before saying no and hanging up the phone.

I just told them I wasn’t interested,” he said. “My feeling is, I don’t know if we’ll get all the funds we’re entitled to, but I’m going to let it play out.”"...


via LynnSamuels.com

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