Hedge Funds

Funds sue Royal Bank of Canada

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A group of hedge funds, led by Toronto-based Silvercreek Capital, is suing Royal Bank of Canada to prevent the bank from obtaining $195 million in a settlement with Enron and Rabobank. The motion objects to a settlement regarding $440 million of stock from an Enron spin-off. Silvercreek said in the motion that, if the proposed settlement was approved, the hedge funds would only recover $68 million, while they were owed more than $402.6 million by the bankrupt former energy giant.