What this money could do is give Dsup the capital to payback these bondholders thru a bankruptcy proceeding, and would give them plenty of liquidity to emerge from bankruptcy with the backing of GE. The company will need to gets its share price up to remain a senior, a status they don't want to lose, they may very well have a plan for this?
These bondholders are hedgefunds. There is obvious a problem with the company taking an alternative route than the one they've layed out. The company needs to regain some solid footing...........There are so many of the hedgies that they touch almost every senior company.
The reason for the increased volatility, today, and everyday its exasberated in the market creating huge swings in one direction or the other due to hedgies.
The BS we read or hear in the news for why this or that is happening can be taken with a grain of salt. "Like you said", there is more to this story. The person behind this story is what they've been told, and has no bearing on what may be the truth?
Stanfield to Spin Off Hedge Fund Group
by James Armstrong, Reporter May 18, 2007
Stanfield Capital Partners announced Tuesday it is separating its hedge fund strategies group as a new company.
Dubbed Solus Alternative Asset Management, the new hedge fund firm will remain under the leadership of Christopher Pucillo, a partner with Stanfield Capital. Terms of the transaction were not disclosed, but the deal is expected to close by the end of June.
In a statement, Dan Baldwin, chief executive officer of Stanfield, said the separation of the hedge fund business will allow Stanfield to focus on its core leveraged loan and structured products business. The hedge fund unit, which has been in operation for the past five years, will also be able to continue to grow and develop, he said.
The new ownership structure is designed to better align the interests of key investment professionals with those of investors. Other than that, there are no changes expected in the hedge fund group, as the current team will remain in place.
New York-based Stanfield Capital was founded in 1998. The firm currently has about $11.2 billion in assets under management.
