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Third Avenue Allowed to Temporarily Halt Redemptions by SEC

  • Firm cancels plan to put fund assets in liquidating trust
  • Regulator sets requirements as condition of approval
Updated on

Third Avenue Management LLC received approval from the U.S. Securities and Exchange Commission to temporarily suspend shareholder withdrawals from its $788.5 million high-yield bond fund after the firm canceled a controversial plan to freeze shareholder assets for a year or more.

The New York-based management firm said last week that it would place the bulk of the fund’s assets in a so-called liquidating trust to sell its holdings, which are primarily distressed bonds and bank loans. Third Avenue reversed course after the SEC “expressed concern” about the fund’s original Dec. 9 plan, according to an application the firm filed Wednesday seeking authorization by the regulator to carry out the suspension.