Updated: 08/07/2009 2:53 PM KSTP.com | Print |  Email
By: Becky Nahm

Third-Party Creditors File Appeal in Petters' Case

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An investment group that made loans to businesses owned by Tom Petters is appealing a judges ruling related to how seized moneys are being spent.

The appeal addresses a June 30 ruling that allowed for the "payment of certain professional fees and expenses from receivership assets."

The investment group, Ritchie Special Credit Investments, is appealing the ruling because it wants to preserve as many assets as possible so the loans it made can be repaid.

Ritchie wants the court to review whether it's fair that requests for payments from the receiver's assets are reviewed in private.

According to the filed appeal, creditors only receive a compilation of hours worked and dollars billed.

The group also questions whether the court should've allowed the government to use money from the receivership estate to pay for professional fees related to the criminal investigation.

Ritchie Special Credit Investments and four other third-party creditors -- Rhone Holdings II, Yorkville Investment I, Ritchie Capital Structure Arbitrage Trading and Ritchie Capital Management -- filed notice of appeal with the court Thursday.

Petters, the founder and former CEO of Petters Group Worldwide, is accused of running a $3.5 billion Ponzi scheme. When investigators seized company assets, Petters Group companies were unable to repay their creditors.

Petters was indicted on 20 counts. He pleaded not guilty. He is scheduled to go on trial Oct. 26.