In a recent court filing, troubled Singaporean drilling company Oro Negro alleges that law firm Quinn Emanuel has misused $8 million of its assets to finance litigation against Oro Negro’s bondholders.
The allegation, contended on May 17th in a discovery request filing, essentially accuses Quinn Emanuel of utilizing the bondholders’ own funds to bring a suit against them. Quinn Emanuel represents a group of bondholders, including Scoggin Management LP, BlueMountain Capital, and Oaktree Capital Group LLC, in a bitter dispute unfolding in New York.
This dispute is just one facet of a larger legal saga following Oro Negro’s bankruptcy, which has also spurred a series of arbitration proceedings in Mexico. Oro Negro and a group of its bondholders accuse each other of forcing the company into insolvency.
It remains unclear how the court will respond to these allegations. For more detailed coverage, see the original article from your trusted news source.