IIG Global Trade Finance Fund lawsuit targets CLO trustee and noteholders, alleging they reaped gains from fraud that cost fund USD 190m
IIG Global Trade Finance Fund launched an adversary proceeding in the US, seeking to hold certain noteholders along with the CLO trustee liable for benefiting from a Ponzi-like fraud scheme by IIG

Sculptor CEO Levin refutes "personal issue" accusation by ex-chief Och
Sculptor Capital Management’s independent board and the company’s chief executive officer and chief investment officer Jimmy Levin have fired back at former CEO and founder Daniel Och after he cited a “personal issue” in reference to Levin’s past

Court orders Bancorp to repay Waterfall's deposit from cancelled CRE CLO
An affiliate of Waterfall Asset Management has won its dispute with Bancorp Bank over a proposed CRE CLO transaction that was terminated in early 2020 owing to “market disruption”  

They said it: "I feel vindicated..."
Dallas-based Patrick Daugherty says “it was worth it”, after his settlement with Highland

Trade finance specialist sentenced to 12 years in prison for CLO and fund fraud
David Hu, the former chief investment officer of International Investment Group, has been sentenced to 12 years in prison for his role in running a “Ponzi-like scheme”, which included using a CLO to create fraudulent loans.  

Highland turnaround is complete as Daugherty takes control of affiliates
“I feel vindicated and proud to have fought for over 10 years on behalf of investors. It was worth it,” Daugherty tells Creditflux after reaching an agreement with Highland where he will have an ownership stake in the Highland platform, among other things 

Highland files lawsuit against former founders and senior executives
Highland Capital Management has filed a lawsuit against several former senior-level executives at the firm, including co-founders James Dondero and Mark Okada

Past returns: Black Diamond riles investors
10 years ago in Creditflux, we reported on lawsuits against Black Diamond Capital Management after it tried to make $45 million of trades in Black Diamond CLO 2005-1 using cash the deal hadn’t yet received

TriMark court ruling encourages peace between lenders
Many CLO managers breathed a sigh of relief in August, with one source indicating a recent court case decision sent a “clear signal that the spate of lender-on-lender violence in the leveraged loan market will not remain unchecked”

Ex-CEO Dondero ordered to pay Highland for breaching restraining order
Highland Capital Management has won a $450,000 award against its founder James Dondero after a Dallas court overseeing Highland’s bankruptcy found that Dondero had breached a restraining order granted in December.

Highland ends 12-year dispute with UBS over CLO-squared amid "shocking revelations"
A 12-year dispute over a failed CLO-squared is close to being concluded after Highland Capital Management filed a motion yesterday to approve the settlement of its dispute with UBS. But wasn't filed without more "shocking revelations"

Fund lenders heighten scrutiny after alleged subscription credit facility fraud
An ongoing investigation into an alleged subscription credit facility fraud has left market participants questioning standard due diligence processes

Golub follows Sixth Street by suing Dyal over Owl Rock merger
Dyal Capital’s merger with Owl Rock faces growing opposition with Golub Capital filing a lawsuit

Citi plans appeal after losing battle to recoup over $500 million in Revlon loan lawsuit
Citibank has lost a lawsuit to recoup $504.1 million from Revlon lenders, having ‘mistakenly’ wire-transferred over $900 million to them last year

Highland files complaint against founder Dondero over "warning" text message allegation
Highland Capital Management has filed for preliminary and injunctive relief in a Texas court after becoming embroiled in a bitter row with its founder James Dondero

Law firms join Wells Fargo class action call over CLO and CMBS book
Frank R Cruz and Rosen have this week joined a growing list of law firms trying to rally investors to join a class action lawsuit against Wells Fargo that allege the bank made ‘materially false and misleading’ statements about holdings in its CLO and CMBS book

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