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Axar Capital, StoneMor Board Accused of Pandemic Buyout Scheme

Dec. 22, 2020, 9:26 PM

Axar Capital Management LP was hit with a lawsuit in Delaware Chancery Court claiming it tried to use the Covid-19 pandemic “as an excuse” to take StoneMor Inc. private “at a bargain price” so it could use the cemetery owner’s “very large trust funds” to rescue other companies in its private equity portfolio.

With “the global collapse of stock markets, StoneMor’s stock price also plummeted,” but Axar and its managing partner, Andrew Axelrod, understanding that the crash was “temporary,” took “the tragedy of Covid-19 as an opportunity to freeze out the other stockholders,” the complaint says.

In addition to Axar, ...

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