Ares sued by Millette’s Hudson debt fund over aircraft loan

Bloomberg

Ares Management was sued by a specialist credit fund co-founded by a former Goldman Sachs Group Inc partner over the sale of collateral on a loan to a struggling Norwegian airline.
Hudson Structured Capital Management Ltd claims that several Ares funds that held the notes directed that aircraft used as collateral be sold to an Ares affiliate, despite a higher offer from an external bidder, according to the lawsuit, filed in New York State Supreme Court.
Hudson, founded by former Goldman partner and credit specialist Michael Millette and onetime Pacific Investment Management executive David Andrews, was an investor in the notes and alleged that it lost at least $14.3 million as a result of the “sham foreclosure sale.”