NEW YORK (Bloomberg) — Meredith Whitney won an early victory in her battle to save her hedge fund as a judge said investor payments can resume while billionaire Michael Platt seeks to recoup his stake.

Platt’s BlueCrest Capital Opportunities Ltd, the biggest investor in Whitney’s hedge fund, sued her in Bermuda in December, saying she refused an October request to return its investment, now worth $46 million. BlueCrest filed a new suit in New York state court last week with the same claim and said it would drop the Bermuda case.

Whitney’s American Revival Fund slid 11 percent last year through November while the S&P 500 rose almost 12 percent. Platt had helped Whitney start her firm, Kenbelle Capital, in 2013 by investing $50 million in the fund.

New York State Supreme Court Justice Jeffrey K Oing granted a request to temporarily block Whitney’s fund from paying investors. Oing lifted the ban yesterday after a hearing in Manhattan and denied BlueCrest’s bid to order Whitney’s firm to honour the redemption request pending the outcome of the suit.

“I’m not quite convinced that there’s a redemption right that’s ripe at the moment,” Oing said.

Whitney said in court papers filed in advance of yesterday’s hearing that the lawsuit is a “blatant attempt” to dissolve her fund and the stake was “seed money” that can’t be redeemed for two years under agreements between the two parties. BlueCrest has argued that it isn’t subject to any lock-up period and can ask for its investment back at any time.