Banking Law News

Hedge Fund Sues Pritzker to Void $14 Billion of State Debt (4)

July 1, 2019, 3:26 PMUpdated: July 1, 2019, 8:16 PM

A hedge fund run by a protege of Appaloosa Management’s David Tepper and the chief executive officer of a conservative think tank sued Illinois Governor J.B. Pritzker, saying $14.3 billion of bonds should be invalidated because their issuance violated the state constitution.

Warlander Asset Management, a New York-based hedge fund formed by Eric Cole, and John Tillman, the CEO of the Illinois Policy Institute, said the state’s record pension bond sale in 2003 and debt issued in 2017 to pay a backlog of unpaid bills were deficit financings prohibited by the constitution. The lawsuit was filed July 1 in Sangamon...

To read the full article log in. To learn more about a subscription click here.