SEC v. Silver Point Capital, L.P.

Silver Point Capital L.P. allegedly failed to establish, implement, and enforce written policies and procedures reasonably designed to prevent the misuse of material nonpublic information (MNPI) relating to its participation on creditors’ committees. According to the SEC’s complaint, from September 2019 through February 2020, a consultant sat on an ad hoc creditors’ committee in connection with the restructuring of Puerto Rico’s defaulted municipal bonds and received MNPI from a related confidential mediation. According to the SEC, this created a substantial risk that Silver Point may have misused information from the mediation in connection with its trading of Puerto Rico bonds.

Summary generated from official Securities and Exchange Commission press release