Just days before announcing that it would liquidate a fixed-income hedge fund, Parkcentral Capital Management defaulted on a margin call, according to a lawsuit filed by JPMorgan Chase. It says it is owed as much as 3 million in collateral based on an early-termination agreement.The bank accused the Plano, Texas-based firm, which primarily manages money for the family of former U. JPMorgan claims it hand-delivered three notices of default to Parkcentral. “By failing to perform its obligations under the master agreement, including its obligation to pay to JPMorgan the amount owing under the master agreement, Parkcentral has materially breached” that agreement,” JPMorgan alleges in the Nov. Last week, Parkcentral told investors it was liquidating its six-year-old Parkcentral Global Hub Fund to pay off creditors.
Some economists are even losing hope that tax reform will be completed by the midterm elections of 2018.
“The fund is no longer viable.” Perot, who made his billions as founder of Electronic Data Systems, ran for president twice, winning 18.9% of the vote in 1992 and 8.8% in 1996.
He is perhaps best-known for his quip that the United States would hear a “giant sucking sound” as American jobs moved to Mexico if the North American Free Trade Agreement went into effect.
The Plano, Texas-based fund is selling its remaining holdings to pay creditors, Eddie Reeves, a spokesman, told Bloomberg. "Parkcentral Global has been impacted dramatically by the unprecedented upheaval of the capital markets in general and the freezing of credit markets in particular," Reeves was quoted as saying.
"The fund is no longer viable." Parkcentral could not be immediately reached for comment by Reuters.