Blackstone, Solus Settle Fight Over Hovnanian CDS Trade

Blackstone Group’s GSO Capital Partners and Solus Alternative Asset Management resolved a dispute over a financing plan for Hovnanian Enterprises Inc., ending an argument that had roiled the credit derivatives market. The fight stemmed from GSO’s agreement last year to lend money to the troubled homebuilder. As part of that deal, Hovnanian agreed to default on a chunk of its debt, a step that allowed GSO to profit from a separate credit derivatives trade.