An examiner will be appointed to conduct an investigation into the bankruptcies of two affiliates of troubled Indianapolis-based developer HDG Mansur, the Indianapolis Business Journal reported today. HDGM Advisory Services LLC and HDG Mansur Investment Services Inc., which manage Shariah-compliant investment funds, filed petitions for chapter 11 protection in Indianapolis on May 21 to fend off a $5.8 million judgment from a lawsuit filed in New York federal district court in January 2013 by funds previously managed by the bankrupt companies. At a Sept. 16 hearing, a bankruptcy judge in Indianapolis denied a request to appoint a chapter 11 trustee or convert the case to a liquidation in chapter 7, according to court records. The request was made by KFH Capital Investment Co. and Kuwait Finance House Real Estate Co. The judge granted the KFH entities’ request for an examiner. He also scheduled a Sept. 22 hearing to consider renewed requests by another creditor to appoint a trustee or convert the case to chapter 7 liquidation, according to court records.
