The Preston Hollow and Nuveen antitrust case continues to make waves. Delaware Chancery Court Vice Chancellor Sam Glasscock III presided over a two-day trial during which direct lender Preston Hollow Capital LLC and Nuveen executives squared off. PHC tried to make its case that Nuveen wrongly sought to choke off its access to financial backing and deals and Nuveen fought back hard.
The court lifted the veil on recorded conversations — conversations that go to the heart of the private lender’s defamation and antitrust claims and the investment powerhouse’s defense that it acted within its rights to protect its business and the high-yield market. In addition, an "unnamed government entity" is now in the mix, and both parties are pointing fingers as to how this entity got involved in the case.
As Preston Hollow sought to open the transcripts for public viewing and discovery, and with depositions underway as both sides prepare for a late July trial, additional bank and individual subpoenas have been filed over the last month as new information continues to come to light.
The judge has made clear in comments that he'd like the two sides to settle. Whether that can be accomplished or if discussions on that front are underway is not clear.
Market participants are hard-pressed to guess the outcome and whether the case stands to influence behavior but it’s sparked plenty of conversations.
