Chicago Tribune- Investors have filed an involuntary Chapter 11 bankruptcy petition against a hedge fund run by Ritchie Capital Management, the latest in a long string of troubles for the suburban investment company now hit with accusations of mismanagemen.
In the U.S. Bankruptcy Court for the Northern District of Illinois, three investors with total claims of $46 million said in court documents Wednesday that they have been repeatedly stymied in their requests for information as they attempt to investigate possible breach of contract and fraud at Ritchie Multi-Strategy Global LLC.
Among other things, the investors, which include two entities known as Benchmark Plus, have asked the court to order Ritchie to hand over documents. They expressed concern that Ritchie Capital “has had ample opportunity to use hundreds of millions of dollars” of assets “for its own benefit and to the likely wrongful detriment of the funds’ investors without any independent oversight,” according to a court filing.
