Credit market upheaval claims Australian hedge fund
Accountancy Age, 31 Aug 2007
Basis Yield Alpha Fund, a £50m hedge fund, has filed for Chapter 11 Bankruptcy protection after being hit by rising mortgage defaults.
According to reports, as the situation in the US sub-prime market spread, the value of its underlying investments fell and it was unable to meet calls from its creditors to pay back loans.
As a result the fund was served with default notices.
Creditors include JP Morgan Chase, Goldman Sachs and Citigroup Global Markets.
The Cayman Islands-registered fund is a division of Australia's Basis Capital.
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