According to a hedge-fund manager last week, one of the most controversial — and complicated — financial engineering practices related to the bankruptcies of companies like RadioShack isn’t in danger of being outlawed, despite complaints from traders, Kevin Dugan reports.

Traders have complained that shadow bankers like Standard General lent RadioShack money only to force its bankruptcy at a later date — when separate derivatives bets would come due and lead to a major payday.

“It’s the greatest lawsuit that will never be heard,” Michael Lipsky, a partner at hedge fund MatlinPatterson Global Advisors, said during an industry conference on Wednesday.

“I find it very hard [to believe] a judge [would] say, ‘Wait a minute, that’s an unfair practice. You’re actually giving the company more liquidity, more lifeline,’ ” he said.