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Sentinel Management trustee looks to sell $800 million of securities
By Caroline Salls
Pittsburgh, Dec. 11 - Sentinel Management Group, Inc.'s Chapter 11 trustee requested court approval of a stipulation agreement that will allow him to sell roughly $800 million of securities held in Bank of New York and JPMorgan Chase Bank, NA accounts, according to a Monday filing with the U.S. Bankruptcy Court for the Northern District of Illinois.
According to the motion, $678 million of the securities are held in Bank of New York accounts and $105 million are held in JPMorgan accounts.
Trustee Frederick J. Grede said the securities to be sold can be broadly categorized as fixed-rate and floating-rate corporate bonds; securities issued by collateralized debt obligations, with underlying collateral comprised primarily of trust preferred securities, corporate bonds, mortgage-backed securities and other asset-backed securities; asset-backed securities, including mortgage-backed securities and other asset-backed securities; and fixed-rate capital securities.
Under the stipulation, 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 to fix the value of the estate and avoid potential market turbulence in order to convert the portfolio to cash.
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.
A hearing is scheduled for Dec. 13.
Sentinel, a Northbrook, Ill., investment adviser, filed for bankruptcy on Aug. 17. Its Chapter 11 case number is 07-14987.
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