Jilted Lenders Nail Belt Black Diamond With $16M Suit

Law360, New York (October 7, 2011, 3:29 PM EDT) -- Commerzbank AG and BMO Harris Financing Inc. sued Black Diamond Capital Holdings LLC for $16 million on Wednesday, alleging that the private equity firm subverted a $75 million loan agreement and paid off certain lenders at the plaintiffs’ expense.

Black Diamond schemed to repay Credit Suisse Group AG and two other chief lenders under the $75 million facility, in brazen violation of the syndicated loan agreement, and acquired the loans to leniently finance its own operations and avoid a default at the height of the credit...
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