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It’s Paul Singer Versus Citigroup in a Bitter Bankruptcy Feud

  • Hedge funds fight for $1 billion in Peabody Energy assets
  • The contentious dispute pivots on an arcane accounting change
Paul Singer

Paul Singer

Photographer: CNBC/NBCU Photo Bank via Getty Images
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As Peabody Energy Corp. stumbled toward bankruptcy last year, its Wall Street adviser raised a red flag for management.

Two powerful and litigious distressed-debt hedge funds held Peabody bonds. “Both are bomb throwers and we should be very suspicious,” wrote Tyler Cowan, a restructuring expert at Lazard Ltd.