Hedge Fund Must Sell Delphi Shares, Judge Rules

Law360, New York (July 19, 2006, 12:00 AM EDT) -- A federal judge ordered a hedge fund on Wednesday to sell about 5.5 million shares of Delphi Corp. stock for violating a court order that restricted stock purchases.

Under rules established earlier this year by the U.S. Bankruptcy Court in Manhattan, any party that doesn’t own 26.5 million Delphi shares and wants to purchase that amount or more must first notify the court.

In June, however, Harbinger Capital Partners Master Fund I Ltd. reported that it owned 32 million, or 5.7%, of the bankrupt auto supplier’s...
To view the full article, register now.

Law360 UK

UK Financial Services

Read Our Latest UK Legal News & Analysis

Financial Services Law360 UK and Insurance Law360 UK provide breaking news and in-depth analysis on U.K. and European Union regulation, enforcement, legislation, and litigation involving banks, investment firms, insurers, and more.