Polaroid Corp. v. Ritchie Capital Complaint

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UNITED STATES BANKRUPTCYCOURTDISTRICT OF MINNESOTA

In re:Polaroid Corporation, et al.,Debtors.(includes:Polaroid Holding Company;Polaroid Consumer Electronics, LLC;Polaroid Capital, LLC;Polaroid Latin America I Corporation;Polaroid Asia Pacific LLC;Polaroid International Holding LLC;Polaroid New Bedford Real Estate, LLC;Polaroid Norwood RealEstate, LLC;Polaroid Waltham Real Estate, LLC)

Jointly Administered underCase No. 08-46617

Court Files No.’s:08-46617 (GFK)08-46621 (GFK)08-46620 (GFK)08-46623 (GFK)08-46624 (GFK)08-46625 (GFK)08-46626 (GFK)08-46627 (GFK)08-46628 (GFK)08-46629 (GFK)Chapter 11 CasesJudge GregoryF. KishelPolaroid Corporation,Plaintiff,-vs.-Ritchie Capital Management, L.L.C.,as administrative and collateral agent,Ritchie Special Credit Investments, Ltd.,Rhone Holdings II, Ltd., YorkvilleInvestments I, L.L.C., and Ritchie CapitalStructureArbitrage Trading, Ltd.,Defendants.ADV. No. _____________

COMPLAINT

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Polaroid Corporation (“Polaroid,” “Plaintiff” or “Debtor”), by and through itsundersigned legal counsel, Lindquist& Vennum PLLP, as and for itsComplaint againstRitchie

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CapitalManagement, LLC(“Ritchie Capital”), as administrative agent for Ritchie Special CreditInvestments, Ltd., Rhone Holdings II, Ltd.,Yorkville Investments I, LLC and Ritchie CapitalStructure Arbitrage Trading, Ltd. (collectively the foregoing and Ritchie Capital are referred toas the “RitchieGroup”), statesand allegesas follows:

PARTIES

1.On December 18, 2008 (the “Petition Date”), Polaroidand other affiliatedPolaroid debtors filed for protection under Chapter 11, Title11 ofthe United States Code (the“Bankruptcy Code”) in the United States BankruptcyCourt for the District of Minnesota (this“Court”), commencing the above-referenced bankruptcycases(the “BankruptcyCases”).TheBankruptcyCases are currently pending before this Court.2.Polaroidis a corporation duly organized and existing under the laws of the StateofDelawareand has its principal place of business located at4400 Baker Road, Minnetonka,Minnesota 55343.Atall times material hereto, Thomas J. Petters, served as Chairman and solemember ofthe Board of Directors of Polaroidand owed Polaroidfiduciary duties by virtue of his position withand influence over the company.3.Atall times material hereto, Polaroid has been ownedby Polaroid HoldingCompany which in turn is ownedandcontrolled by Petters Group Worldwide, LLC(“PGW”)which, in turn, is owned and controlled by Thomas J. Petters.Atall times material hereto,Thomas J. Petters, served as Chairman of the Board of Directors and Chief Executive Officer of PGW.4.PGW is a corporation duly organizedand existing under the laws of the State of Delawareand is a debtor in a Chapter 11 bankruptcy case identified as BKY Case No. 08-45258which is currently pending before this Court.

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5.Ritchie Capital is a limited liability company duly organized and existing under the laws of the State of Delaware and, upon information and belief, is a hedge fund that has its principal place of business located at 801 Warrenville Road, Suite 650, Lisle, Illinois 60532.RitchieCapitalis an initial transferee of the fraudulent, preferential or other avoidable transfersalleged in this Complaint, or a person for whose benefit such transfers were made, or animmediate or mediate transferee of such an initial transferee.6.Ritchie Special Credit Investments, Ltd. is a Cayman Islands exemptedcompanywhose address is c/o Ritchie Capital Management, LLC, 801 Warrenville Road, Suite 650, Lisle,Illinois 60532.7.Rhone Holdings II., Ltd. is Cayman Islands exempted company whose address isc/o Ritchie Capital Management, LLC, 801 Warrenville Road, Suite 650, Lisle, Illinois 60532.8.Rhone Holdings II., Ltd. is a Cayman Islands exempted company whose addressis c/o Ritchie Capital Management, LLC, 801 Warrenville Road, Suite 650, Lisle, Illinois 60532.9.Yorkville Investments I., LLC. is a Cayman Islands exempted company whoseaddress is c/o Ritchie Capital Management, LLC, 801 Warrenville Road, Suite 650, Lisle,Illinois 60532.10.Ritchie Capital Structure Arbitrage Trading, Ltd. is a Cayman Islands exemptedcompany whose address is c/o Ritchie CapitalManagement, LLC, 801 Warrenville Road, Suite650, Lisle, Illinois 60532.

JURISDICTION AND VENUE

11.This Court has jurisdiction under 28 U.S.C. §§157 and 1334 of the subject matter ofthis adversary proceeding because the claims asserted herein arise under Chapter 11 of theBankruptcyCode and are related to a case pending under the Bankruptcy Code before this Court.12.This adversary proceeding is a core proceeding pursuant to 28 U.S.C. §157.

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