Two affiliates of troubled Indianapolis-based developer HDG Mansur oppose requests to appoint a chapter 11 trustee or convert the case to a liquidation in chapter 7, saying that significant progress has been made toward a plan and global settlement of claims, the Indianapolis Business Journal reported today. HDGM Advisory Services LLC and HDG Mansur Investment Services Inc., which managed Shariah-compliant investment funds, filed court papers Sept. 11 opposing the requests. The requests were made by KFH Capital Investment Co. and Kuwait Finance House Real Estate Co., which sued Mansur Investment and owner Harold Garrison in the United Kingdom for breach of contract, fraud and negligent misrepresentation, according to court papers. The KFH entities aren’t eligible to seek such “drastic measures” because they’re not creditors of, nor do they have claims against, both debtors, according to the fund managers. They are motivated by “some other unstated purpose,” not their chapter 11 rights or distributions in the case, the fund managers said in the court filings.
