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Article: Hedge funds drop cash, pressure on suppliers.(News)
- Article from:
- Automotive News
- Article date:
- August 1, 2005
- Author:
CopyrightCOPYRIGHT 2005 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Terry Kosdrosky tkosdrosky@crain.com
A new type of investor smells opportunity in the struggling auto-supply industry, one willing to put money at risk but expecting quick and high returns: hedge funds.
Not only are these funds buying and selling publicly traded debt, they're making investments, such as angling for ownership of supplier Intermet Corp., which has filed for Chapter 11 bankruptcy protection.
According to published reports, a few hedge funds - including Soros Fund Management LLC and Davidson Kempner Advisors Inc. - hold second-tier secured debt for supplier Meridian Automotive Systems Inc. of Dearborn, Mich., which is in ...