Hammered by sour bets on the Brazilian airline industry, the fund on Wednesday filed for bankruptcy in New York with plans to liquidate and return capital to investors. MatlinPatterson Global Partners II LLC, its general partner, also requested Chapter 11.
MatlinPatterson’s fund has been trying to dissolve “for many years,” but it has faced three lawsuits over Brazilian investments that have hampered those efforts, according to one.
The parent company of the fund was
It made a series of investments in the Brazilian airline industry starting in 2006, which generated a “substantial loss”, according to court documents.
MatlinPatterson’s liabilities include $ 58 million in intercompany promissory notes and $ 423 million in claims arising from the litigation, the statement said. He has $ 142 million in cash. The fund expects to oppose lawsuits and pay lower-ranking creditors in full, according to the
Funds managed by MatlinPatterson invested in Volo dB, which then bought VarigLog, a freight airline, according to
Matlin Patterson too
After winning big on debt issued by MCI Inc. and Huntsman Corp., the fund struggled with performance due to its investments in Thornburg Mortgage Inc. and the failure of bond brokerage firm Gleacher & Co., Bloomberg News previously
He listed assets between $ 50,001 and $ 100,000, and liabilities up to $ 50,000 in a Chapter 11
The case is MatlinPatterson Global Opportunities Partners II,
–With the help of
To contact the reporter on this story:
To contact the editors responsible for this story:
Nick Baker, Dawn McCarty
© 2021 Bloomberg LP All rights reserved. Used with permission.