Blackstone's Disputed CDS Trade Set for Court Hearing
- Hedge fund sues to stop ‘voluntary default’ by Hovnanian
- Attempt to protect market, or act of a ‘rejected suitor’?
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A deal struck between Blackstone Group LP’s GSO Capital Partners and a homebuilder that has gripped traders and investors in the credit derivatives market will get its day in court.
The plan hatched on the sidelines of a marquee conference in Miami and set in motion in the final hours of 2017 is now at the center of allegations of fraud and manipulation that will be addressed Thursday in Manhattan federal court. Hedge fund Solus Alternative Asset Management wants to temporarily block GSO and the builder, Hovnanian Enterprises Inc., from completing the funding deal pending outcome of its suit.