Wednesday, November 14, 2012

Distressed Investors Carlyle & MEG Battle in Court

The Carlyle Group's Sapphire Energy charged lawyers with snatching back $17.5 million in escrow money owed to Morris Energy Group LLC from the purchase of eight power plants.   It's the battle of an army of lawyers from competing distressed investors, MEG vs. Carlyle/Riverstone:

MEG focuses on improving the financial performance of distressed generating businesses in the Northeast U.S.
Carlyle/Riverstone's Sapphire is managed by the Topaz Power Group team. Topaz is 50% owned by Carlyle.

Which group will win?   Which will cause the other more distress?