Gas Partnership Trustee Hits Goldman With $10M Loan Suit

Law360, New York (August 29, 2011, 12:32 PM EDT) -- Bankrupt Hallwood Energy LP's trustee on Thursday sued the commodities arm of Goldman Sachs Group Inc. in Texas federal court, claiming its refusal to advance the shale gas prospector $25 million breached a loan agreement and caused $10.3 million in damage.

Goldman unit J. Aron & Co. was obligated to advance the $25 million, the amount remaining on a $65 million loan agreement reached in 2006, according to the complaint filed by Hallwood trustee Douglas J. Brickley.

The intentional failure, in 2007, to advance the money...
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