Barclays Loses Bid To Ax AHM Trustee's $45M Contract Suit

Law360, Wilmington (November 12, 2013, 9:09 PM EST) -- A Delaware bankruptcy judge refused Friday to toss a suit alleging Barclays Bank PLC had violated a swaps agreement with mortgage lender American Home Mortgage Holdings Inc., allowing AHM's trustee to proceed with a complaint that also seeks to eliminate more than $45 million in claims filed by the bank.

In a 34-page opinion, U.S. Bankruptcy Judge Christopher S. Sontchi found the trustee had brought plausible claims that Barclays had breached its contract by not returning excess collateral it held under the swaps agreement, instead using...
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