What do you think of this?? === Amaranth seeks $1bn from JP Morgan William Hutchings 14 Nov 2007 Failed US hedge fund manager Amaranth Advisors has sued JP Morgan Chase claiming the US bank sabotaged its negotiations with Goldman Sachs over the sale of an energy derivatives portfolio. The lawsuit claims JP Morgan Chase used its position as the hedge fund's broker to scupper a sale of the portfolio to Goldman Sachs, according to Bloomberg. This allegedly forced Amaranth to sell the portfolio to JP Morgan Chase and US hedge fund manager Citadel on less favourable terms. Amaranth is seeking more than $1bn (â¬700m) in damages. JP Morgan Chase declined to comment. Amaranth Advisors last September recorded a loss of $6.5bn, 70% of the value of its multi-strategy fund, after the positions it had taken on natural gas futures went against it. JP Morgan Chase and Citadel took over the energy derivatives portfolio. Amaranth Advisors said a cash concession made to JP Morgan Chase in connection with this transaction caused $2.5bn of the total losses. The legal documents said that Amaranth asked Goldman Sachs on September 15 to assume its money-losing positions because the fund's losses were mounting and its margin requirements had topped $3bn. The bank agreed to take the trades for a $1.85bn concession, according to the documents. The documents said JP Morgan Chase refused to execute the order for the Goldman Sachs trade, causing Goldman to walk away from the deal. Amaranth then contacted Citadel, which initially agreed to take over the energy portfolio for $1.85bn, but changed its mind after JP Morgan Chase executives warned it about Amaranth's solvency, the documents said. JP Morgan Chase told Amaranth on September 19 2006 that it would take over the energy portfolio, according to the documents, which said Citadel bought it from JP Morgan for $725m a fortnight later on September 29.