Oppenheimer Funds is assessing a judge's recent
"We disagree with the court's decision and are reviewing the opinion and weighing all available legal options," a press officer for the asset management firm said late Friday after state Superior Court Judge Michael Silverstein granted summary judgment to the Tobacco Settlement Financing Corp. of Rhode Island.
The corporation wants to proceed with its sale of Series 2014 bonds backed by tobacco-company payments under the landmark 1998 settlement.
Oppenheimer, in its capacity as a holder of Series 2007 B and C bonds, had argued that the transaction in question wrongfully created an amendment to the 2007 indenture, and that the transaction would have constituted a fraudulent transfer intended to circumvent a subordination structure.
The corporation sold bonds to investors in 2002 and in 2007.
Under the 1998 agreement, tobacco companies agreed to pay 46 states for expenses related to smoking illnesses. In its aftermath, Rhode Island officials formed the corporation in to raise money, selling bonds backed by future settlement revenue in exchange for the upfront money.
According to court documents, bond-sale proceeds are intended to refund all existing 2002 high-coupon bonds.
