If a hedge fund wants to take an active role in a Chapter 11 proceeding, how forthcoming does it have to be about its business and interests? That's a big issue right now, with lots of opinions. It will be taken up by a federal rule-making panel that will try to bring some consistency to the issue.

The panel has already proposed expanding the disclosure currently required by parties in a bankruptcy. Some say more information is warranted, especially when financial instruments such as CDSs "muddy the issue of a group's economic interests. This might reveal, for example, that an ad hoc committee fighting against a reorganization plan could actually benefit if the company liquidates," Reuters notes.

Hedge funds may see it differently. In a recent win for hedge funds, a judge ruled a group of funds did not have to reveal what they paid for the debt of an ailing company. And indeed Delaware judges have made different rulings in different cases as of late. The panel will hear a variety of opinions before issuing a final recommendation. 

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