General Motors Corp.’s bankruptcy, which wiped out shareholders and left taxpayers on the hook for billions of dollars, is generating a new wave of profit for hedge funds that supersized their claim by betting on an obscure pool of GM debt issued in the Canadian province of Nova Scotia.
Harvey Miller, the lawyer guiding Lehman Brothers Holdings Inc. through the biggest-ever U.S. bankruptcy, sipped a cappuccino at a tourist-filled cafe near Manhattan’s Central Park and reflected on how his client’s collapse five years ago went from unthinkable to inevitable.
Paulson & Co., the hedge fund that forced Lehman Brothers Holdings Inc. to sweeten payouts for senior bondholders, helped galvanize the bankrupt company into action after its managers and advisers pocketed more than $1.1 billion in fees in 28 months of bankruptcy.
BP Plc may saddle potential buyers of its assets with lawsuits as Europe’s second-biggest oil company tries to raise money to pay claims that may reach $100 billion from the Gulf of Mexico spill, lawyers said.
Barclays Plc has won as much as $5.5 billion from the liquidator of Lehman Brothers Holdings Inc.’s brokerage since buying the defunct investment bank’s North American business more than three years ago.
Lehman Brothers Holdings Inc. , whose $11 billion suit against Barclays Plc is drawing to a close, is going after JPMorgan Chase & Co. as the next deep pocket to pay creditors in the biggest U.S. bankruptcy.
The Los Angeles Dodgers, which asked at least seven lenders for money before filing for bankruptcy today, will pay 10 percent interest on a loan from JPMorgan Chase & Co.’s Highbridge Capital Management LLC, plus fees.