New Stream Files Rival Ch. 11 Against Investors

Law360, New York (March 14, 2011, 9:12 PM EDT) -- New Stream Capital LLC and several of its affiliates filed for bankruptcy protection on Sunday, setting up a fight with dissenting investors who say the prepackaged plan was designed to disenfranchise them.

The filing comes a week after investors filed an involuntary petition to force three other New Stream funds into bankruptcy, with both cases ending up before Judge Mary F. Walrath in the U.S. Bankruptcy Court for the District of Delaware.

The investors — owed $90 million — claim their money has been “fraudulently funneled...
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