Apollo Global Management head Leon Black, a famous alum of Drexel Burnham, is considered a whiz with bonds (bond market news). His success is a matter of record. Recently, however, success meant having to play hardball with bondholders of his portfolio firms, taking advantage of various covenants to give him maximum flexibility. As Bloomberg Markets details, some are fighting back against what they consider hardball tactics.

Huntsman sued Black and others for $3 billion in June 2008 after Apollo backed out of an agreement to buy the firm. Carl Icahn (Carl Icahn news) sued Apollo in November 2008 over Black's attempt to swap old Realogy bonds for new; he was an old bond holder and didn't like the fact that new bond holders stood ahead of old bond holders in pecking order should the company default. A judge sided with Icahn, forcing Realogy to cancel the exchange.

Investors have also been taking some shots. The influential California Public Employees' Retirement System won a cut in the fees, after it complained about private equity fees in general.

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