Judge Orders Hedge Fund Disclosure in Northwest Case
Filed in archive Hedgetalk by Alex Akesson on March 13, 2007
. "Any interest that individual committee members may have in keeping this information confidential is overridden."Gropper's ruling enforces Bankruptcy Rule 2019, which says parties acting as a group must disclose certain information about their holdings. The decision requires the 13 hedge funds on the committee to make public information about trading patterns, holdings and pricing, which hedge funds, as a rule, prefer to keep secret.

Gropper gave the funds until Wednesday to publicly state their stakes in Northwest, along with when and at what price they bought the securities.
Northwest Airlines said that it expected to be worth roughly $7 billion when it emerged from bankruptcy later this year and that it would pay unsecured creditors roughly three-quarters of what they were owed. The unsecured creditors also objected to sealing the documents, arguing that the public had a right to know how the hedge funds came to own about $264.7 million in claims, 30% of the airline's stock.
The hedge fund group collectively owns about 23 million Northwest shares, according to a court filing in January.
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