Burkle's Yucaipa Sues Morgans For $10M After Board Battle

Law360, Chicago (June 28, 2013, 7:39 PM EDT) -- Still salty after a bitter proxy fight, billionaire Ron Burkle’s Yucaipa Cos. sued on Thursday to recover $10 million that Morgans Hotel Group Co. allegedly forfeited when it backed out of a debt swap with the private equity firm.

In a complaint filed in New York state court, Yucaipa said Morgans breached a contract when it put the $230 million swap deal on ice earlier this month after Morgans’ largest shareholder, OTK Associates LLC, seized control of the hotel group’s board from Yucaipa.

According to the...
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