Fir Tree Flags Potential Pitfalls in Landlord SBB’s Bond Buyback
- Hedge fund says investors may end up waiving claims on firm
- Fir Tree previously has said SBB is in breach of bond terms
Fir Tree claims the language of SBB’s offer is phrased in a way that the waiver could stand even for notes that haven’t been submitted.
Photographer: Andrey Rudakov/BloombergThis article is for subscribers only.
US hedge fund Fir Tree Partners has called for clarity on SBB’s recent offer to buy back a portion of its outstanding bonds, weeks after claiming the Swedish landlord was in breach of debt terms and demanding repayment.
“Unclear” language in the tender offer means any investor participating could be inadvertently agreeing to waive their claims against Samhallsbyggnadsbolaget i Norden AB, as the company is officially known, Fir Tree said in a letter to other bondholders.