Seth Klarman’s Baupost Group LLC and other hedge funds stand to make at least a $400 million profit from a bet on Toshiba Corp.’s bankrupt Westinghouse Electric Co. business, WSJ Pro Bankruptcy reported. Toshiba announced yesterday that it sold its claims in the Westinghouse bankruptcy case to a consortium led by Klarman’s Boston hedge fund for $2.16 billion. Baupost and its allies could make at least $400 million on the claims that it purchased from Toshiba, when the $3.7 billion cash proceeds from the recent sale of Westinghouse to Brookfield Asset Management Inc. is divided among creditors at the close of the bankruptcy process.
