The hedge funds, which specialize in making money off distressed debt, today revealed their moves by filing official objections to the city's restructuring plan.
But their emergence -- which was long expected -- may yet prove to be a positive development because they are often inclined toward settlements.
In other words, the arrival of hedge funds -- which critics often refer to as vulture investors -- may help resolve the largest municipal bankruptcy in U.S. history. For now, though, they are officially objecting to
The hedge funds that revealed themselves as creditors in
It was not immediately clear how much debt the hedge funds had acquired, at what price or when. They may be targeting the
The city has argued that debt, insured by
But a settlement in which the city agrees to pay a small percentage of those claims is not out of the realm of possibility.
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