A slew of hedge funds, banks and other financial firms, including Longacre Fund Management, Elliott Management, Triax Capital Advisors and Contrarian Capital, have started contacting MF customers with offers to buy their claims for cash — but at a discount to their face value, The NY Post has learned. Commonly referred to as “vulture investors” because they seek to profit off distressed situations like bankruptcies, these shops are seeking to buy the rights to money owed to MF customers in the aftermath of the firm’s Halloween bankruptcy.
MF’s brokerage customers saw more than $5 billion in assets frozen after it emerged that a whopping $1.2 billion was missing from customers’ accounts.
The bulk of the offers coming in are for between 80 cents to 85 cents on the dollar, sources said. Those offers suggest savvy investors are anticipating returns of 90 cents on the dollar or higher. But MF’s customers also appear pretty confident that they’re going to be made close to whole, if not completely whole, prompting them to shoo the vultures away.
Read more: http://www.nypost.com/p/news/business/mf_vulture_club_H43D4GDAUh6ju04ulNnfoJ
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