Ritchie Capital Management, L.L.C.; Ritchie Special Credit Investments, Ltd.; Rhone Holdings II, Ltd.; Yorkville Investments I, LLC; Ritchie Capital Structure Arbitrage Trading, Ltd., Appellants
Douglas A. Kelley, in his capacity as the Chapter 11 Trustee of Petters Company, Inc.; VICIS Capital Master Fund, Ltd.; Official Committee of Unsecured Creditors, Appellees
Submitted February 12, 2015.
[Copyrighted Material Omitted]
Appeal from United States District Court for the District of Minnesota - Minneapolis.
For Ritchie Capital Management, L.L.C., Ritchie Special Credit Investments, Ltd., Rhone Holdings II, Ltd., Yorkville Investments I, LLC, Ritchie Capital Structure Arbitrage Trading, Ltd., Appellants: Thomas K. Cauley Jr., Michael J. La Mare, Brian A. McAleenan, Sidley & Austin, Chicago, IL; James M. Jorissen, Leonard & O'Brien, Minneapolis, MN.
For Douglas A. Kelley, in his capacity as the Chapter 11 Trustee of Petters Company, Inc., Appellee: Adam C. Ballinger, Mark S. Enslin, Terrence J. Fleming, George Singer, Sandra S. Smalley-Fleming, Lindquist & Vennum, Minneapolis, MN.
For VICIS Capital Master Fund, Ltd., Appellee: Valerie L. Bailey-Rihn, Matthew J. Flynn, Jonathan W. Hackbarth, Matthew J. Splitek, Quarles & Brady, Madison, WI; Peter D. Gray, David A. James, Nilan & Johnson, Minneapolis, MN.
For Official Committee of Unsecured Creditors, Appellee: Lorie Ann Klein, Connie A. Lahn, David Runck, Fafinski & Mark, Eden Prairie, MN.
Before BYE, BEAM, and BENTON, Circuit Judges.
BYE, Circuit Judge.
Ritchie Capital Management, L.L.C., and other appellants (collectively, Ritchie) objected to an allocation of proceeds derived from a settlement between Douglas A. Kelley, in his capacity as Chapter 11 bankruptcy trustee of Petters Company, Inc. (PCI), and VICIS Capital Master Fund, Ltd. (VICIS). The bankruptcy court overruled the objection and approved the settlement and the allocation of proceeds. Ritchie appealed, and the district court affirmed. Ritchie again appeals, alleging the bankruptcy court abused its discretion by approving the allocation. We affirm.
Prior to his downfall in September 2008, Thomas Petters orchestrated a $3.65 billion Ponzi scheme. This Court has described in several of its opinions the specifics of Petters's scheme and the numerous resulting civil disputes. See, e.g., United States v. Petters,663 F.3d 375, 379-80 (8th Cir. 2011); Ritchie Capital Mgmt., L.L.C. v. Jeffries, 653 F.3d 755, 758-60 (8th Cir. 2011); Ritchie Special Credit Invs., Ltd. v. U.S. ...