Harbinger redemptions to be paid in illiquid LightSquared equity
By Britt Erica Tunick
Tue Jun 7, 2011
Investors liken the decision to yet another side-pocketing of redemptions.
Just as investors in Phil Falcone's flagship Harbinger
Capital Partners fund feared, the firm is not paying its first
quarter redemption requests entirely in cash. Instead,
investors seeking redemptions will receive in-kind payments of
the firm's illiquid holdings in broadband wireless company
LightSquared, an investment representing about 80% of the
firm's net asset value.
"In light of my high conviction in LightSquared, its size
within our portfolio and the necessity of maintaining a
controlling position while we join forces with a strategic
partner, we have determined to distribute a portion of the
withdrawal proceeds for March 31, 2011...
TAKE A FREE TRIAL
The full contents of this article are available to Absolute Return subscribers and trialists only.
To continue reading please, take a free trial, subscribe or log in.
Subscribers have unlimited access to all current and archive content. Start your subscription today - click on the button below.