An Illinois based cash fund, Sentinel Management filed for bankrutpcy on Friday after a Judge blocked its attempts to sell assets to another fund.

“Sentinel, based in Northbrook, Illinois, a firm that oversees $1.6 billion, stopped the withdrawals Tuesday, prompting the brokers Farr Financial and Velocity Futures to sue.
Farr claimed the freeze blocked access to client funds. Velocity, joining the suit Friday, sought to keep its own clients’ assets from being sold to Citadel because the assets were being sold at a 15 percent discount. The assets may have already been sold, lawyers for both sides told a U.S. District Court judge, Ronald Guzman, on Friday in Chicago.
‘Sentinel’s representations to the court were that the deal was done, with perhaps only $10 million to $15 million that hadn’t been transferred,” Matthew Crowl, a lawyer representing Velocity, said during an interview. “You’d think that they’d be in great shape if they had this huge influx of cash.’”

Here is a link to the entire article:

http://www.iht.com/articles/2007/08/19/bloomberg/bxinvest.php

Have a great Monday! Mike