SPAC Bankruptcies Rock Hedge Funds

Deals made before the market selloff are falling apart.

Alex Kraus/Bloomberg

Alex Kraus/Bloomberg

In just the past few weeks alone, several once-private companies that had previously merged with blank-check companies have either filed for bankruptcy or are close to it.

A number of prominent hedge funds are among the major shareholders who had previously invested in the merged companies and are now potential losers.

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