Bloomberg News

Perry Capital Seeks Dismissal of Solus Madoff Claim Suit

August 03, 2012

Perry Capital LLC asked a judge to dismiss a lawsuit by Solus Alternative Asset Management LP in which Perry is accused of making a “willful breach” of obligations to sell an interest in $195 million of claims on Bernard L. Madoff’s estate.

Solus sued Perry last month for $20 million in New York state court in Manhattan, saying the trade was sealed over the telephone and in Bloomberg LP’s “instant messages.” Perry said there was never a draft agreement or “meeting of minds” over essential aspects of the trade, citing state contract law.

“Simply put, legally and commercially, there has never been a contract, let alone one that can be enforced in court,” Perry said today in a court filing.

The fight between the hedge fund firms comes as prices for claims on the confidence man’s estate have climbed to about 65 cents on the dollar from the low 60s, according to Joseph Sarachek, managing director of claims trading at CRT Capital Group LLC, which buys and sells distressed debt.

The Madoff brokerage’s customers, after receiving $333 million in 3 1/2 years from the liquidator, will receive $1.5 billion to $2.4 billion, trustee Irving Picard said last month.

David Rosner, a lawyer for Solus, didn’t immediately respond to an e-mail seeking comment on Perry’s filing.

Perry Capital Founder

Richard Perry founded his hedge fund firm in November 1988, after previously working at Goldman Sachs Group Inc. (GS:US) A so-called event-driven manager, he trades stocks and debt of companies involved in mergers and spinoffs and those emerging from bankruptcy.

Solus, led by Christopher Pucillo, also specializes in “event and credit-related” investments and manages $2.5 billion in assets, the New York-based firm said in a February statement.

Madoff is serving a 150-year prison sentence.

The case is Solus Alternative Asset v. Perry Corp., 652341/2012, New York State Supreme Court, New York County (Manhattan.)

To contact the reporter on this story: Linda Sandler in New York at lsandler@bloomberg.net.

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net.


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