Already in a financial rut, in 2011 MatlinPatterson Global Advisers lost a $55 million arbitration award in a fraudulent-concealment case brought by a Brazilian airline. But the hedge fund may never have to pay up, thanks a ruling its lawyers at Simpson Thacher & Bartlett won from a Manhattan judge on Thursday.
In a seven-page decision, U.S. District Judge Miriam Goldman Cedarbaum refused to enforce an arbitral award against MatlinPatterson for allegedly misleading Gol Linhas Aereas Inteligentes SA, Brazil’s second-largest airline, about the terms of a $320 million transaction. Cedarbaum ruled that MatlinPatterson never agreed to arbitrate pricing disputes over the 2007 transaction, so the $55 million award is unenforceable.
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