Investors Tell 2nd Circ. Not To Revive $143M Barclays Suit
By Kurt Orzeck
Law360, Los Angeles (October 11, 2013, 4:47 PM ET) -- Investors urged the Second Circuit on Thursday not to revive a $143 million suit brought by SemGroup LP creditors against Barclays Bank PLC over an allegedly unfair fee it collected following SemGroup's bankruptcy, warning that its litigation trustee was trying to circumvent “safe harbors” rules.
In an amicus curiae brief, the investors said Bettina Whyte, who challenges the fee Barclay collected when it took over the company's commodities trading positions, was trying to make an “end run” around laws limiting a bankruptcy trustee's avoidance powers....