An involuntary Chapter 11 bankruptcy action filed against the onshore feeder of the Ritchie Multi-Strategy Fund has been dismissed by Judge Susan Sonderby in U.S. Bankruptcy Court in Chicago. Investors in the troubled hedge fund Benchmark Plus Partners and Sterling Private Investments sought to push the fund into involuntary bankruptcy to get access to fund records. According to court documents, Ms. Sonderby found that the funds manager, Ritchie Capital, was meeting its financial obligations as the fund is being unwound.
This is an expected but gratifying victory for all investors in the fund and a vindication of our actions. Riding out the storm of tumultuous markets is never easy, but we have a disciplined strategy and it is working. Maximizing value for all our investors has been and will be our primary mission, A.R. Thane Ritchie, CEO of the eponymous firm, said in a news release.
Jeff Marwil, a partner at the law firm of Winston & Strawn, which represented Benchmark Plus and Sterling in their action, did not return a call seeking comment to the ruling.