Bulldog Investors Sues To Prevent “Claw Back” Lawsuits Against Public Stockholders of Bankrupt SPAC

SADDLE BROOK, N.J., Feb. 16, 2024 (GLOBE NEWSWIRE) -- Bulldog Investors, LLP (“Bulldog”) announced that it has filed a lawsuit against the bankruptcy trustee for Industrial Human Capital, Inc. (the “SPAC”) (former ticker: AXH) to declare that public stockholders are not required to return funds previously held in trust and properly distributed to stockholders after the redemption of the SPAC’s Class A common stock. In letters to stockholders, the bankruptcy trustee has stated an intent to pursue such funds to satisfy claims of creditors of the SPAC. The lawsuit seeks a judgment from the U.S. Bankruptcy Court for the Southern District of Florida declaring that the trust fund was never subject to creditor claims and, in any event, public stockholders are protected by law from “claw back” lawsuits.

Phillip Goldstein, a managing partner of Bulldog, stated: “Investors need assurance that a SPAC’s trust fund, which is a critical component of its structure, is protected from creditor claims caused by the SPAC’s managers. We hope this lawsuit will provide that assurance to the market.”

The action is captioned Bulldog Investors, LLP v. Robert A. Angueira, solely in his capacity as Chapter 7 Trustee of the Bankruptcy Estate of Industrial Human Capital, Inc., No. 24-01027.

Morris Kandinov LLP is representing Bulldog in the litigation.

About Bulldog Investors, LLP:

Bulldog is an SEC-registered investment adviser that manages closed-end funds and separately managed accounts. (www.bulldoginvestors.com)

Contact: InvestorCom
John Glenn Grau, (203) 972-9300 ext. 110