Ritchie hedge funds disclosure statement approved; confirmation hearings Sept. 11

By Caroline Salls

Pittsburgh, Aug. 5 - The disclosure statement for Ritchie Risk-Linked Strategies Trading (Ireland) Ltd. and Ritchie Risk-linked Strategies Trading (Ireland) II, Ltd.'s plans of liquidation was approved Tuesday by the U.S. Bankruptcy Court for the Southern District of New York.

The plan confirmation hearings are scheduled for Sept. 11.

As previously reported, each of the Ritchie hedge funds will liquidate its remaining assets and distribute proceeds to creditors under their plans of liquidation.

Creditor treatment

Treatment of creditors under the plans will include:

• Holders of $1.225 million of Ritchie I administrative claims and $1 million of Ritchie II administrative claims will recover 100% in cash;

• The holder of the about $68 million Ritchie I bank claim will receive residual cash, as well as net litigation proceeds;

• Holders of $236 million of Ritchie I general unsecured claims will receive their share of net litigation proceeds after administrative claims and the bank claim have been paid in full;

• Holders of Ritchie II general unsecured claims will receive their share of Ritchie II residual cash, as well as a share of Ritchie II net litigation proceeds; and

• Holders of Ritchie I and Ritchie II equity interests will receive no distribution.

Ritchie Capital Management's two Ireland-based hedge funds filed for bankruptcy on June 20, 2007. Their Chapter 11 case number is 07-11906.

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