New Stream Opens Asset Sale To Competing Bids

Law360, New York (April 25, 2011, 7:01 PM EDT) -- Bowing to pressure from unsecured creditors, bankrupt hedge fund New Stream Secured Capital Inc. agreed Monday in Delaware to entertain alternative bids for its portfolio of life settlement investments in addition to a McKinsey & Co. affiliate’s $184 million offer.

U.S. Bankruptcy Judge Mary F. Walrath signed off on $5.3 million in bid incentives for McKinsey at a hearing Monday, which the unsecured creditors committee and dissident investors agreed to in return for an open sale process.

New Stream’s prepackaged Chapter 11 plan — which will...
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