Connecticut Retirement Plans and Trust Funds, Hartford, hired legal counsel to protect its $200 million investment in Forstmann Little private equity partnerships. In a statement, state Treasurer Denise L. Nappier said Forstmann Little has not responded to the $19 billion systems concerns about the firms investment of another $175 million in McLeodUSA, which filed for reorganization under Chapter 11 of the Federal Bankruptcy Code Jan. 31 because of inability to manage its debt. That brings Forstmann Littles investment in McLeod to $1.17 billion.
According to the statement, the firm refused to communicate with the state about its investment in McLeod. Forstmann Little, in a statement, said representatives from the state of Connecticut have been in frequent contact with the firm.