It has come to the knowledge that Mr. David Tepper, the person who is solely responsible for the operation of the Appaloosa Management hedge Fund is considering over the decision of blocking a debt-for-equity swap. The debt-for-equity swap is aimed generally at the rescuing of the passenger and freight transporter Sea Containers from defaulting on its bonds. It has also been heard, that Tepper, as days are moving out, is getting worried about the dilutive effects of the exchange.

However, the details of the proposed swap has not been published yet to the fore. There is a strenuous effort but the definite date of the publication or the announcement of the proposed swap unfortunately remains imprecise. 

Mr. David Tepper is one of the renowned and top paid hedge fund managers in the international arena. Prior to this he used to be in charge of the execution of the high yield bond desk at Goldman. He was instrumental in the foundation of formed Chatham, New Jersey based Appaloosa Management, a hedge fund investment firm with an estimated value of $3 billion in 1993.

It has been reported from the sources of the industry that, Tepper's fund had purchased its shares in the company for $7 and $8 a share. It is also believed that the shares are now worth close to $17 a share. In this regard, it is to be mentioned that Appaloosa controls around 11.3% of the shares.

To the inner sources of the company, the sea containers have been in trouble for a while. But things when picked up last was when the company became vocal in announcing two possible breaches in reference to its obligations to the holders of the bond. It has also been confirmed by the Company that it could not yet determine whether it is in compliance with bond covenants that require it so as to maintain a minimum net worth, and would not be in the position to confirm compliance till there happens a full completion of an internal review of its financial position.

In the meantime, the Sea Containers have also announced of its intension to violate bond covenants requiring it to use proceeds from asset sales to pay down debt, buy replacement assets or buy back bonds. In response the company has reiterated saying that it needed to keep some of the proceeds from the sale of shares in Orient-Express Hotels in order to meet its cash flow requirements.