WHITEBOX CONVERTIBLE ARBITRAGE PARTNERS, L.P. v. FAIRFAX FINANCIAL HOLDINGS, LTD.

249 600306/08

73 A.D.3d 448 (2010)

900 N.Y.S.2d 56

WHITEBOX CONVERTIBLE ARBITRAGE PARTNERS, L.P., et al., Respondents, v. FAIRFAX FINANCIAL HOLDINGS, LTD., Appellant.

Appellate Division of the Supreme Court of New York, First Department.

Decided May 6, 2010.


This is an action for breach of an indenture agreement, dated as of July 14, 2003. Plaintiffs (collectively, Whitebox) are approximately two thirds of the debenture holders. The only contested issue is the meaning of a single sentence, albeit an inordinately long one, in the indenture.

In July 2003, defendant Fairfax, a Canadian financial services holding company, issued $200 million (U.S.) worth of 5% convertible senior...

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