SBA To Liquidate JH Whitney Unit

Law360, New York (February 14, 2012, 8:04 PM EST) -- The U.S. Small Business Administration on Friday took control of a subsidiary of buyout firm J.H. Whitney & Co. that it says has lent out $93 million in agency money and violated guidelines meant to limit risk.

The SBA was appointed as receiver for JHW Greentree Capital LP and has authority to liquidate its assets.

JHW Greentree is what’s known as a small business investment company, or SBIC, meaning it is one of about 300 funds licensed by the SBA to invest in small businesses, generally...
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