Cyrus Capital Throws Sears CDS Into Disarray

Och-Ziff and Omega are losers in a battle over the retailer’s debt.

(Victor J. Blue/Bloomberg)

(Victor J. Blue/Bloomberg)

Hedge funds are fuming about what they believe are Stephen Freidheim’s Cyrus Capital Partners’ efforts to stop them from profiting on their bet that Sears would fail — a bet made through credit default swaps on Sears debt.

The $4 billion-plus Cyrus Capital is enmeshed in the Sears drama in a number of ways.

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