Fight Over Madoff Liquidation Claims

      AUSTIN (CN) – A New York-based investment firm reneged on selling $4.8 million worth of “valuable claims” in the Bernard Madoff securities firm liquidation, an Austin-based investment company claims in court.
     Blue Creek Funding LLC sued Fisher Family Associates LP in Travis County Court.
     Blue Creek claims Fisher agreed in August to sell the claims, but backed out “at the eleventh hour” to seek other buyers.
     Blue Creek says it negotiated with Fisher throughout the summer and they signed a trade confirmation, specifying that the deal would close by Aug. 28.
     Blue Creek claims it was “reasonably certain” it could sell the claims to a third party for a higher price.
     It claims that it and Fisher agreed to move up the “drop-dead” date to “seven days past the interim distribution,” after Fisher expressed concerns about something going wrong. And it says Fisher agreed to not work with any other potential buyers under a standstill clause in the contract.
     “Fisher got seller’s remorse about its contract,” the complaint states. “On September 13, Fisher’s representative informed Blue Creek that Fisher would not perform the trade.”
     Blue Creek claims Fisher told it that “I view the trade as canceled because it did not timely close pursuant to the trade confirmation and because of [Blue Creek’s] email further canceling the trade on August 22nd.” (Brackets in complaint.)
     Blue Creek disagrees. It claims Fisher walked away because the price of the claims had risen.
     Blue Creek seeks damages for breach of contract and unjust enrichment.
     It is represented by Collin Cox, with Yetter Coleman of Houston.

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