Sentinel Files for Bankruptcy:

UPDATE 2-Sentinel files for Chapter 11 bankruptcy

Sat Aug 18, 2007 2:11AM EDT

By Martin Howell

NEW YORK, Aug 17 (Reuters) - Sentinel Management Group Inc., a cash management firm serving the U.S. futures industry whose decision to freeze client accounts on Tuesday helped roil global financial markets, filed for Chapter 11 bankruptcy protection late on Friday.

The firm, which managed about $1.6 billion of assets, said in the filing that its board decided it was in "the best interests of the corporation, its creditors and other interested parties that a voluntary petition be filed ... in an effort to restructure the indebtedness of the corporation," according to a filing in the bankruptcy court for the Northern District of Illinois.

http://www.reuters.com/article/marketsNews/idUKN1822736220070818?rpc=44

 

This one will have a HUGE fallout in the futures industry.

 

Yes. There is a pretty long creditor list.

 

these creditors would be like shareholders of a company

get nothing if the assets are worth nothing

 

It seems odd to me that Sentinel is filing for bankruptcy. I expect a money manager to return funds to investors when a breakpoint is reached. The breakpoint might be a 50 % loss. I wonder if Sentinel has a breakpoint policy.