Advisory Firm Marathon Asset Management Charged with Policies Failures Regarding Potential Receipt of Confidential Information from Ad Hoc Creditors’ Committees

The Securities and Exchange Commission today announced settled charges against registered investment adviser Marathon Asset Management LP for failing to establish, maintain, and enforce written policies and procedures reasonably designed to prevent the misuse of material nonpublic information relating to its participation on ad hoc creditors’ committees. According to the SEC’s order, one of Marathon Asset Management’s core strategies has been to invest in distressed corporate bonds and other similar debt in the United States, Europe, and Asia. As part of this strategy, and because of the nature of its business and its holdings, Marathon Asset Management regularly participated on ad hoc creditors’ committees where participants may receive material nonpublic information or engage advisers who are often tasked with analyzing debtors’ material nonpublic information.