Subprime Defaults Force Hedge Fund Into Ch. 15

Law360, New York (August 29, 2007, 12:00 AM EDT) -- Volatility related to subprime lending defaults forced yet another financial company to file for bankruptcy protection on Wednesday.

In a Chapter 15 bankruptcy petition filed with the U.S. District Court for the Southern District of New York, hedge fund Basis Yield Alpha Fund said it began to suffer a significant devaluation of its asset portfolio by June.

The fund's petition listed assets and liabilities of over $100 million, and listed the number of creditors at between one and 49. On Wednesday, the fund also filed a...
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