Plaintiffs Kingate Global Fund Ltd. and Kingate Euro Fund Ltd. (Funds) were two feeder funds that invested substantially all of the money they raised with Bernard L. Madoff Investment Securities (Madoff).  In August 2011, the Funds and defendant Deutsche Bank Securities Inc. (Deutsche Bank) signed a “confirmation letter” that contemplated the purchase of $1.6 billion of the Funds’ claims against Madoff for 66 cents on the dollar.  The parties negotiated through the fall, but never signed a formal purchase agreement.  In December 2011, the Funds commenced this action against Deutsche Bank seeking to enforce the confirmation letter.  This article summarizes the Funds’ allegations, which are relevant to hedge funds that trade Madoff exposure or other bankruptcy claims.  See also “Two Key Levels of Risk Facing Hedge Funds That Buy or Sell Bankruptcy Claims,” Hedge Fund Law Report, Vol. 4, No. 27 (Aug. 12, 2011).