Goldman Says Icahn Fund Held Up $140M Delphi Debt Deal

Law360, New York (June 28, 2011, 4:51 PM EDT) -- A Goldman Sachs & Co. affiliate told a New York judge on Tuesday that an investment fund controlled by Carl Icahn improperly delayed closing nine contracts to sell $140 million in distressed debt in then-bankrupt auto-parts maker Delphi Corp.

Under the contracts, Icahn’s High River Limited Partnership was to sell Goldman Sachs Lending Partners LLC $140 million worth of Delphi debt for about $53 million in July 2009, a deal that essentially bet the debt would lose value. But the value of the debt actually rose...
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