5th Circ. Affirms Win for Banks in €137M Financing Dispute
New York partners Hugh McDonald and Patrick Fitzmaurice were mentioned in this June 1, Law 360 article about the Fifth Circuit affirming a win for several European banks represented by Troutman in a lawsuit stemming from a €136.9 million financing agreement for nine power-generating structures that was closed in 2001. The case involves a long-running bankruptcy dispute related to Mirant Corp.’s guaranty of the financing agreement for the power generation equipment. Mirant and its affiliates repaid the loans prior to the commencement of their bankruptcy cases in 2003. Following years of litigation, that included a prior appeal to the Fifth Circuit, the district court granted summary judgment to the lenders prior to the commencement of a jury trial. The district court found that under New York law, fair consideration for the guaranty was supported by the satisfaction equivalent debt. The plaintiff, MC Asset Recovery LLC, appealed the district court decision. On Thursday, the Fifth Circuit agreed with the district court's ruling, writing that the “plain meaning and language used in those agreements,” supports its summary judgment award.