Deutsche Loses Out On $47 Million From Genuity Chapter 11

A federal appeals court has upheld a lower court's summary judgment ruling that Deutsche Bank AG is not entitled to $47.6 million in cash recovered in bankruptcy court from an Internet company because the German bank breached the terms of a revolving credit facility, Bankruptcy Law360 reported. The U.S. Court of Appeals for the Second Circuit ruled Friday in an unpublished opinion that Deutsche Bank was in breach of contract because it declined to advance $127.5 million from its share of a nine-bank revolving credit facility to Genuity Inc., an Internet company that filed for Chapter 11 bankruptcy protection in November 2002. Read more. (Subscription required.)