Several months back, it came to light that Phil Falcone had loaned himself some $113 million from one of Harbinger's funds to pay personal taxes. He didn't tell anyone about it at the time because he hadn't thought it was that big a deal but when investors finally heard about it in November, it turned out they were mighty pissed. Goldman and Blackstone pulled their entire investments from the flagship fund and even though they should've take the loan as a postive sign (Falcone pays his taxes! Not everyone does that!), a bunch of clients feared it was a harbinger of not very good moments to come (some where also miffed about the fact that the loan was taken from a fund in which redemptions had been suspended). We too were a bit worried and couldn't help but going to the dark place in which Wilbur, the Falcone's piano-playing pig was laid off, Lisa had to sell the crown jewels of her wardrobe (including The Gladiator, Mermaid Chic, and Slutty Peacock, and the couple's bar-in-closet could no longer stock top shelf liquor. The whole thing was very stressful, so today's news brings some sweet relief.
Philip Falcone recently rid himself of a headache when he paid off the balance of a controversial $113 million loan he had taken from his hedge fund, public records reveal. On March 11, lawyers for Falcone's Harbinger Capital Partners filed a formal "termination" notice for the loan with the New York State Department of Corporations. The termination notice removes a lien the hedge fund had placed on some of Falcone's assets at the time the loan was arranged in October 2009. Liens are terminated when a debt is paid.
Everyone can breathe a collective sigh of relief, especially Wil, who's so happy about this news has said he'll do some Bette Midler tonight, should anyone request it.
Falcone Pays Back Hedge Fund Loan [Reuters]