As part of the ABS holders’ planned settlement with National Century Financial Enterprises, ING will likely refund a $43.1 million principal payment it received from NPF VI in November 2002, which is being called a “preferential transfer” by the debtors in possession of the bankrupt estate.
The debtors are also targeting a $75 million principal payment to Credit Suisse First Boston in September 2002 from the NPF XII trust.
For reprint and licensing requests for this article, click here.
Investment firms and hedge funds are increasingly engineering bankruptcy loans and side deals to take control of Chapter 11 reorganizations from the outset, locking in rich rewards for themselves while potentially locking out rivals and lower-ranking creditors with little transparency. The trend is sure to speed up cases, but it also forces judges to make quick decisions that may shortchange some valid claims.
The U.S. Second Circuit ruled that Momentive Performance Materials should use what's known a a "market rates" formula to determine the appropriate payout for a series of replacement notes issued to bondholders.
The American Bankruptcy Institutes Commission to Study the Reform of Chapter 11 includes a number of proposals that could reduce recoveries for senior creditors, including collateralized loan obligations.
Mention cumulative charge-offs in single-digit basis points and premiums of more than 100 basis points for ‘AAA’-rated bonds, and institutional investors are bound to scoff. But ABS backed by structured settlement payments do in fact meet those criteria. With just over $3 billion of paper outstanding, this asset class represents a tiny corner of the […]
Former National Century Financial Enterprises Director of Compliance Brian J. Stucke recently pleaded guilty to criminal conspiracy fraud charges filed by the U.S. Attorney’s Office for the District Court for the Southern District of Ohio, under a plea agreement. Last week, the Securities and Exchange Commission filed a civil injunctive action against Stucke as well. […]
