A fight between Northwest Airlines and a group of hedge funds to force each other to tip their hands on investment decisions and discussions has led to what could be a pivotal ruling on hedge funddisclosure.
U.S. Bankruptcy Judge Allan Gropper was expected on Wednesday to make a final decision after ruling last week that a group of 13 investors must disclose information about the size of their equity stakes in Northwest Airlines Corp., when they bought and sold, and what they paid.
The outcome has the potential to deter hedge fund involvement in companies under bankruptcy court protection, restructuring lawyers say, which could take away one of the newer tools companies use to help them exit bankruptcy.
