Zais Investment Grade VII noteholders file involuntary Chapter 11 case

By Caroline Salls

Pittsburgh, April 11 - Zais Investment Grade Ltd. VII had an involuntary Chapter 11 bankruptcy case filed against it on April 1 in the U.S. Bankruptcy Court for the District of New Jersey.

The involuntary petition was filed by Anchorage Capital Master Offshore, Ltd., which holds a $77.76 million claim for Zing 7A A1A notes and a $4.96 million claim for Zing 7X COM3 notes; GRF Master Fund LP, which holds $7.4 million of Zing 7A A1A notes and $522,623 of Zing 7X COM3 notes; and Anchorage Illiquid Opportunities Offshore Master, LP, which holds $39.83 million of Zing 7X A1A notes and $2.78 million of Zing 7X COM3 notes.

According to court documents, the Zing 7X COM3 notes are a combination of A-3 notes and B-2A notes.

The notes are secured by CDO securities and synthetic assets. All of the notes are scheduled to mature in 2057, according to a prospectus dated when the notes were originally sold in 2007.

Zais has 21 days from the filing date to respond to the petition.

Zais is a Cayman Islands-based investment company. The Chapter 11 case number is 11-20243.

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