Reuters reported that a divided New York state appeals court ruled on Thursday that Barclays Plc breached a derivative agreement with a Black Diamond Capital Management unit and must return an estimated $297 million in collateral to the hedge fund.

Reuters said further that the fund’s BDC Finance filed a lawsuit against the bank in 2008, claiming Barclays had defaulted on a $40 million collateral call made at the height of the financial crisis, although Barclays said it only owed $5 million, which it remitted to Black Diamond two days after the call was made.

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