Cayman Fund Files Ch. 15 Over $72M In Subprime Loans

Law360, New York (December 19, 2011, 9:08 PM EST) -- Liquidators of American Pegasus SPC, a Cayman Islands-based hedge fund, filed for Chapter 15 protection in California bankruptcy court last week to help it recover $72 million in uncollected subprime automobile loans.

American Pegasus, which invested about $150 million in subprime auto loans and life settlements in the U.S., was involved in a prior U.S. Securities and Exchange Commission investigation that found that its investment managers had misused client assets, engaged in improper self-dealing and failed to disclose conflicts of interest.

American Pegasus creditors started liquidation...
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