In December 2000, defendant Ark CLO 2000-1 purchased a portfolio of distressed loans, known as collateral debt obligations (CDOs), and bundled them into a collateralized loan obligation which it financed by issuing investment-grade notes and preference shares to outside investors. Pursuant to the governing indenture, Ark appointed JP Morgan Chase, a wholly independent entity, to serve as the trustee responsible for handling all cash for Ark's investors. On a quarterly basis...
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