Sentinel Management trustee granted court permission to sell $800 million of securities

By Jennifer Lanning Drey

Portland, Ore., Dec. 14 - Sentinel Management Group, Inc.'s Chapter 11 trustee was granted court approval of a stipulation agreement that allows him to sell about $800 million of securities, according to a Friday filing with the U.S. Bankruptcy Court for the Northern District of Illinois.

As previously reported, $678 million of the securities are currently held in Bank of New York accounts and $105 million are held in JPMorgan Chase Bank, NA accounts.

According to the motion requesting court approval of the sale, trustee Frederick J. Grede, Sentinel's official committee of unsecured creditors and the Bank of New York have all agreed that it is in the best interests of all parties that the securities be liquidated as soon as possible in order to fix the value of the estate and avoid potential market turbulence related to converting the portfolio to cash.

The securities to be sold can be categorized as fixed-rate and floating-rate corporate bonds; securities issued by collateralized debt obligation, with underlying collateral primarily comprised of trust preferred securities, corporate bonds, mortgage-backed securities and other asset-backed securities, including mortgage-backed securities and other asset-backed securities; and fixed-rate capital structures.

Grede will solicit market clearing bids for the securities from selected dealers, then will select the dealer with the highest bid on a security-by-security basis.

Sentinel, a Northbrook, Ill., investment adviser, filed for bankruptcy on Aug. 17. Its Chapter 11 case number is 07-14987.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.