A Carlyle Group LP hedge fund has lost $400m it invested during 2015 in a Moroccan oil-refinery deal due to the liquidation of Societe Anonyme Marocaine de l’Industrie du Raffinage (Samir) in 2016, reported  Dow Jones News.

The hedge fund, known as Vermillion, was to receive a share of revenue from the refinery Samir, however, the refinery ran into financial trouble and was seized by the Moroccan authorities later in 2015. The Moroccan government said that Samir owes $1.33b in taxes, according to AFK Insider.

Meanwhile, Saudi billionaire Mohammed al-Amoudi’s Corral Holdings, which has a 67.

26% stake in Samir, has been battling creditors ranging from oil traders to banks who are owed millions. Carlyle has spent $5m in total in legal and professional fees to date trying to receive its profit. Currently, Carlyle expects the matter to lead to litigation and “significant additional costs or liabilities.”

Carlyle said that it believes $400m in petroleum commodities were “misappropriated by third parties outside the US.” The company did not identify the soured deal nor name the third parties.