CLO overpays equity after test breach

By James Harvey

Thursday, May 07, 2015

Senior investors in a 2007 European CLO missed out on principal payments after interest proceeds were mistakenly used to pay equity distributions

Subscriber-only article

This article is available only to Creditflux subscribers and free trial users within 30 days of publication.

Already a subscriber? Not logged in? Click here to login.

If you have not already done so,
you may request a FREE TRIAL by clicking here

This trial will give you:
  • 4-weeks' free online access to our
    most recent subscriber-only articles
  • Daily breaking news alert sent by email
  • A print copy of Creditflux

If you currently have a free trial, you will see this message when you try to view articles older than 30 days.

Comment by: James Harvey. Posted 8 years ago [2015-05-14 16:54:09]

Clarification: A previous version of this article stated that the overpayment was "due to be rectified before the next payment date in July". Officials at BNY Mellon, the collateral administrator, have said that the overpayment was in fact rectified in April.

Newsletter

more stories...