Hedge Funds

Lichtenstein revises restructuring plan for Steel Partners


Warren Lichtenstein, founder of the activist firm Steel Partners, has revised the restructuring plan for his troubled $1.2 billion Steel Partners II fund after a lawsuit and deluge of investor complaints related to his proposed solution for handling redemptions. The fund, Lichtenstein’s flagship, lost 39% in 2008.

Late last year, after receiving redemption requests representing 40% of the assets of Steel Partners II, Lichtenstein halted redemption payouts and proposed that Steel roll the fund into a publicly listed shell company that Steel controls. Under that plan, an investor who wished to redeem interests from the fund would need to