Marc Lasry-Affiliated Hedge Fund Issues Update On Ambow Education’s Liquidation

Marc Lasry hedge fund: Avenue Asia Capital Management, a hedge fund raised by Marc Lasry’s Avenue Capital, recently disclosed that its affiliate, GL Asia Limited plans to take part as a member of the Stakeholders Committee of Ambow Education Holding Ltd (ADR) (NYSE:AMBO), the ideas of which will be taken into account by Ambow’s Joint Provisional Liquidators, a filing with the Securities and Exchange Commission stated.

Avenue Asia Capital Management is one of the largest shareholders of Ambow Education Holding, and owns 21.6 million shares, equivalent to 21.9% of the company. At the current price of Ambow’s stock, Avenue Capital’s position has a value of $20.5 million. Ambow is currently in the process of provisional liquidation. Earlier in April, Avenue Capital issued a letter, in which it expresses its position against the company’s CEO, Dr. Jin Huang.

“While we continue to be optimistic regarding the Company’s future prospects and potential, it is clear to us, and we believe to other investors, that the publicly reported allegations of accounting, financing and governance deficiencies, and recent resignation letters by members of the Company’s Audit Committee and the Company’s registered independent accounting firm, citing the continued presence of existing management as an impediment to the Company’s efforts to address such deficiencies, are severely undermining the Company’s shareholder value and placing the shareholders’ investment in the Company in imminent peril,” the letter said.

In addition to Avenue Capital, Phil Frohlich’s Prescott Group Capital Management, which owns 694,900 shares, and Renaissance Technologies, managed by Jim Simons, are long the stock.

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Disclosure: none