Opposing Investors Win Standing In New Stream Ch. 11

Law360, New York (April 1, 2011, 6:17 PM EDT) -- Investors opposing New Stream Secured Capital Inc.’s reorganization plan won standing Wednesday to participate in the Delaware bankruptcy, allowing the investors to embark on a broad investigation of the hedge fund that could threaten the expedited timeline of the case.

Judge Mary F. Walrath found at a hearing in the U.S. Bankruptcy Court for the District of Delaware that the dissident investors— owed nearly $100 million — had direct claims against New Stream that were “sufficiently colorable” to confer standing, rejecting the hedge fund’s argument that...
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