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Overseas Bear Stearns hedge funds denied Chapter 15 relief.(credit column)(Bear Stearns Companies Inc.)

Business Credit

| July 01, 2008 | Nathan, Bruce; Corbi, Richard | COPYRIGHT 2008 National Association of Credit Management. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

The problems afflicting the venerated investment banking firm Bear Stearns first became apparent when two of its overseas Cayman Islands hedge funds had collapsed in 2007 under the weight of the increased delinquencies of their subprime mortgage loans and the subprime mortgage crisis afflicting the United States credit markets at that time. The Bear Stearns overseas funds commenced liquidation proceedings in the Cayman Islands and their liquidators simultaneously filed, and sought recognition of, Chapter 15 proceedings in the United States Bankruptcy Court for the Southern District of New York in order to protect the funds' United States assets from seizure by creditors. ...

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