Kroll pays $2 million settlement over control failures in rating CLOs and CMBS
The Securities and Exchange Commission has charged Kroll Bond Rating agency more than $2 million for failures related to rating CLO combo notes, as well as in the CMBS sector

HarbourVest fights back over CLO fund investment after Highland's objection
HarbourVest Partners, the key investor in risk retention vehicle Highland CLO Funding, has shot back at Highland Capital Management in court, arguing it had not insisted on changing the manager on its CLO fund from Acis to Highland, as Highland had claimed

They should have followed Revlon's Double Twist mascara slogan of 2009: "It's worth a double take"
Blockchain might not eradicate all problems in credit, but it should reduce human error

Guernsey puts Highland wrangles out to pasture
A royal court’s dismissal of proceedings in Guernsey could spell the beginning of the end in Highland Capital Management’s legal action against former employee Josh Terry

Highland no longer defendant in Citi's Revlon loan lawsuit
Citi has dismissed its suit against Highland Capital Management as it seeks repayment on a Revlon loan, according to court filings. The lawsuit remains open against another 11 defendants

Details emerge on nature of Revlon payment 'error' and lender attitudes
Fresh details have emerged on the nature of the ‘operational error’ Citi says took place when it transferred $900 million to Revlon loan holders

Court meets Citi and defendants in middle with trial pushed to November
The Court overseeing the Citi Revlon wire transfer case has met Citi and the defendants in the middle, adding that “a more realistic, but still expedited, trial date should be adopted”

Lenders argue for extended timeline in Revlon loan lawsuit
A 30 September preliminary injunction hearing and trial has been outlined under Citi’s schedule. But the defendants have proposed an alternative schedule, under which the lawsuit would culminate in a trial mid-December

Citi versus Brigade battle puts CLO issue in limbo
A feud between Citi and Brigade Capital Management has intensified, with Citi reportedly stepping down from lead arranger on Brigade's latest CLO over a Revlon loan payment dispute just as the deal was about to hit the market

Highland case against ex-PM Terry dismissed for lack of jurisdiction
The island of Guernsey is famous for its high tidal range and dairy produce. But it is not the right place for Highland Capital Management to churn legal action over CLOs against former employee Joshua Terry - so says a royal court, dismissing litigation the company filed there in 2018

Founder of west coast direct lender charged with fraud
Brendan Ross, founder and former chief executive officer of Direct Lending Investments, was arrested and charged with 10 counts of wire fraud yesterday, amid allegations he inflated the value and returns for a fund investment, resulting in mis-statements to investors and around $5-6million in overcharged fees

Acis CLO fights back against risk retention financier
A 2014 US CLO which was part of the acrimonious split between asset managers Acis Capital Management and Highland Capital Management has become the centre of a dispute stemming from a risk retention financing agreement signed in 2018

Fund manager accused of using fake CLO to run multi-million Ponzi scheme
The co-founder of an investment management company who has been charged with fraud by the securities and exchange commission for setting up a multi-million dollar Ponzi scheme is alleged to have raised a CLO trust backed by fraudulent trade finance loans

Highland directors intervene to get CLO mismanagement lawsuit dropped
Details have emerged about the nature of the ‘CLO mismanagement’ lawsuit filed on behalf of a charitable fund, seeded by Highland Capital Management, after it was dropped by plaintiffs

Charitable daf "seeded by Highland" files lawsuit alleging CLO mismanagement
A charitable organisation has filed a lawsuit against several parties managing and monitoring a pair 2.0 CLOs in which it has exposure to the equity tranche

Highland Capital Management LP working to remove founder Dondero
Highland Capital Management LP is working with the unsecured creditors committee on a new management team while the US trustee demands an independent trustee to oversee the bankruptcy

CLO issuance faces threat amid loan definition dispute
The clash over Millennium Laboratories’ bankruptcy could have ramifications for the CLO market, and it all hinges on the philosophical question: what is a loan?

Highland Crusader Fund dispute re-ignites in Delaware court
Highland Capital Management is weighing the financial impact of its ongoing litigation over crisis-era fund redemptions with the Redeemer Committee of the Highland Crusader Fund

Medley BDC loses compliance with NYSE as two directors depart
The Medley marathon continues after two "independent" directors offered their resignations. The pair were named in a lawsuit last month with activist shareholders FrontFour 

Barings and Napier Park fight over Duchess VI incentive fee
Napier Park European Credit Opportunities Fund and Barings (UK) faced off in court this week over the payability of an incentive collateral management fee (ICMF) after the 2006-vintage Duchess VI CLO was called by the equity in 2018. Duchess VI CLO. After a two-day hearing, the judge, Lord Justice Vos, reserved his judgment

Highland slams court's approval of CLO manager's restructuring plan
Highland Capital Management has spoken out against a US bankruptcy court’s confirmation of Acis Capital Management’s restructuring plan, saying it expects the decision to be overturned

Debtwire: Acis CLO judge finds all three plan options unconfirmable and sides with Highland's objections
Acis Capital Management’s judge last week issued a ruling denying all three versions of Acis’s proposed reorganisation plan, which was highly contested by creditor Highland Capital Management and subordinated noteholder Highland CLO Funding

Debtwire: Highland slams chapter 11 trustee over Acis CLOs as Brigade and Oaktree wait in the wings
Highland Capital Management is preparing for battle this month over the fate of Acis Capital Management, a CLO manager affiliate placed into bankruptcy by its former partner Josh Terry. Three options are on the table, with Oaktree, Brigade and Terry potentially taking prominent roles

Court order forces former Sound Point CLO PM into 90-day non-compete
Sound Point Capital Management is locked in a dispute with its former employee Murtaza Haque who left the firm in May with a view to joining GoldenTree Asset Management    

Credit hedge fund to pay $10 million to settle insider trading case
New York-based Visium Asset Management is to pay approximately $10 million to settle a credit fund insider trading case, 8 May US regulatory filings reveal