Thursday, June 21, 2007
Omp, Omp, Omp, And Another One Bites The DUST!
This time it's Ritchie:
Hedge-fund manager Ritchie Capital Management Ltd.'s two Irish based funds filed for bankruptcy protection after losses of more than $700 million it blamed on a co-investor's alleged fraud.Heh, heh, heh, who woulda thunk one could lose money on this?
Ritchie's two Dublin-based funds, Ritchie Risk-Linked Strategies Trading (Ireland) Ltd. and Ritchie Risk-Linked Strategies Trading (Ireland) Ltd. II, both sought Chapter 11 reorganization yesterday in U.S. Bankruptcy Court in Manhattan. The two petitions listed debt of $811 million. Court filings said the assets are undetermined.
The filings come almost two months after Lisle, Illinois- based Ritchie sued Coventry First LLC for allegedly misleading it about life insurance co-investments. Coventry seeks to dismiss the lawsuit, calling it a ``cheap publicity stunt'' to divert attention from Ritchie's own financial problems.
The two debtors were formed in 2005 to invest in the so- called life-settlement market where wealthy individuals over age 65 sell their life insurance policies for less than the death benefit and more than the cash-surrender value.Words fail me. See the post below. The economy's quite weak and the financial unwind is slowly gaining strength. T-Bills have never looked so good to me.
The buyer continues to pay the premiums, betting that the named-beneficiary of the policy will die soon enough to make a profit.
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