Arcapita Creditor Tide Continues Fight for Better Treatment

Tide Natural Gas Storage LP sued a former group of minority shareholders of Falcon Gas Storage Co., the bankrupt Arcapita subsidiary that sold natural-gas assets to Tide. The energy company says those shareholders’ claims in Arcapita’s bankruptcy shouldn’t be paid before their own. The shareholders have been paid some of the money they were owed but are slated to receive an additional $8.25 million that lies in a $70 million account. The $70 million lies in an escrow account and stems from Tide’s 2010 purchase of the natural-gas storage facilities from Falcon. Tide has been fighting for the money in U.S. District Court in Manhattan for two years. Arcapita has argued the $70 million claim by Tide should be subordinated to those of other creditors. The issue, Arcapita says, isn’t whether the claim should be placed lower, but rather how much of it should be.

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