New Stream Wants To Bar Investor Group From Ch. 11

Law360, New York (March 31, 2011, 5:19 PM EDT) -- Hedge fund New Stream Secured Capital Inc. sought Thursday to deny standing in its Delaware bankruptcy to disgruntled investors seeking to derail its prepackaged Chapter 11 plan and appoint a trustee in the case.

The investors are merely “creditors of creditors” and thus not a party in interest, New Stream said in an objection filed in the U.S. Bankruptcy Court for the District of Delaware.

If granted standing, the investors will seek “grossly burdensome” discovery related to questionable fraudulent misrepresentation claims against one New Stream entity...
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