Despite his erudication and spellingtude, the chairman of Cerberus Int'l (former vice presidentoe Dan Quayle) was unable to save the three headed titanic. Farewell Steve Feinberg, we won't miss you and your usurious second liens.
From the WSJ:
Cerberus Capital Management's investors overwhelmingly want out of the firm's core hedge funds, asking for the return of more than $5.5 billion, or almost 71% of the fund assets, according to people familiar with the matter.
Mr. Feinberg has personally called Cerberus clients over the past two weeks to discuss his firm's plans to retool the Cerberus Partners hedge funds, which make up about one-third of the firm's total assets. The hedge funds hold roughly $7.7 billion in assets in two side-by-side vehicles, one domestic and one offshore.
Cerberus in recent days has tried to convince investors -- called limited partners in the private fund business -- to transfer assets to the new follow-on fund, called Cerberus Partners II. Since December, Cerberus has declined to pay out cash, saying that weak market conditions would mean low prices if it sold holdings.
"Unfortunately a number of our LPs have indicated that they cannot invest in Cerberus Partners II LP without quarterly liquidity," Mr. Feinberg wrote in the most recent letter. "In our view, given the current general illiquidity in the distressed markets, it would be practically impossible for a distressed investment fund to provide quarterly liquidity for 100% of its capital."
Alas Cerberus was not quite as big or stupid as CIT to end up on the Fed's dinner plate. One doubts too many tears will be shed for the company that always was the last ditch rescue financing provider due to its tendencies to extract three pounds of flesh with any $20 million L+2000 first lien.