On August 26, 2011, Judge Raymond T. Lyons of the United States Bankruptcy Court for the District of New Jersey issued an opinion refusing to either dismiss or abstain from the involuntary bankruptcy proceedings filed by senior noteholders of Cayman Islands collateralized debt obligation issuer (CDO) Zais Investment Grade Limited VII.  For further analysis of considerations when dealing with collateralized obligations, see “Key Legal and Business Considerations for Hedge Fund Managers When Purchasing Collateralized Loan Obligation Management Contracts,” Hedge Fund Law Report, Vol. 3, No. 13 (Apr. 2, 2010).