Firm Represents Chapter 11 Trustee of Hedge Fund in Plan Confirmation

The Firm represented the Chapter 11 Trustee of Princeton Alternative Income Fund, L.P., and its general partner, Princeton Alternative Funding, L.L.C., hedge funds organized to provide capital to deep subprime consumer lenders. At their height, the Princeton fund advanced $85 million to deep subprime consumer lenders. The Trustee was appointed after the Princeton companies suffered adverse findings in an arbitration proceeding brought by their largest investors. The case presented difficult issues of Delaware limited partnership law, the intersection of state consumer finance laws and tribal lenders, and bankruptcy law. In a proceeding notable for its contentiousness, the Firm led the effort by the Trustee to propose and confirm a plan of reorganization for the debtors, which was supported by all the major creditors and equity holders. The plan was confirmed and became effective on March 30, 2020, in the U.S. Bankruptcy Court for the District of New Jersey.

The case is In re: Princeton Alternative Income Fund, L.P., No. 18-14603.