Dispute With Heller Could Cost Banks $50M

Law360, New York (January 6, 2009, 12:00 AM EST) -- Bankrupt law firm Heller Ehrman LLP is questioning the legitimacy of Bank of America NA and Citibank NA's attempt to go back on a 2007 order terminating their perfected security interests in the firm that could cost the banks more than $50 million.

Heller's first-day motions, filed Dec. 28 in the U.S. Bankruptcy Court for the Northern District of California, reveal that Bank of America, acting as an agent for itself and Citibank, terminated its perfected security interests in Heller in August 2007.

The banks had...
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