May a pack of hedge funds gang up on a borrower to stop pack members from cutting deals with the borrower to lighten its debt burden?
Of course they can (and would), you say. But would they thus run afoul of the Sherman Act? Did you think of that? Heard of section 1? Which bars contracts, combinations, and conspiracies to restrain trade? Huh?
If that notion failed to flit across the great swirling maelstrom of your ever-churning mind, don't feel lonesome. The Eleventh Circuit ruled that section 1 Did Not Apply to a boycott by a group of hedge funds, which owned debt of subprime lender CompuCredit. At least the panel felt that way last November.
But now the Whole Court will give it further thought. The order sets a briefing schedule and oral argument some time in the week of October 15, 2012.
Please do not confuse this CompuCredit case with this one in the U.S. Supreme Court from January 2012 or this other one in the Eleventh Circuit from April 2012.