Irving H Picard, trustee for the liquidation of Bernard L Madoff Investment Securities (BLMIS), is seeking approval for a recovery agreement with a Cayman investment fund.
The fund, Senator Fund SPC, is invested exclusively in BLMIS.
Under the terms of the recovery agreement, the settlement will benefit the BLMIS Customer Fund by $95 million. Approval of the Senator agreement is pending with the United States Bankruptcy Court.
In addition, a recovery agreement of approximately $497 million, reached between the Securities Investor Protection Act (SIPA) trustee and the Herald/Primeo feeder funds, is also pending approval with the Bankruptcy Court.
Once both agreements are final, and combined with the agreement reached with the Blumenfeld defendants and approved by the Court on November 18, 2014, total BLMIS Customer Fund recoveries will be approximately $10.5 billion.
“The SIPA Trustee’s legal team at BakerHostetler has worked diligently over the years to bring the maximum amount back into the BLMIS Customer Fund, and with these two settlements – Senator and Primeo/Herald – total recoveries to date have now crossed well beyond the $10 billion threshold,” said Oren Warshavsky, lead counsel for the matter and architect of the settlement on behalf of the SIPA trustee.
“Our colleagues at Windels Marx, who serve as special counsel to the SIPA trustee on the Blumenfeld settlement approved today by the United States Bankruptcy Court, have also worked tirelessly for the benefit of BLMIS customers. Together, these three settlements show that the SIPA trustee and his legal team continue to work towards a full recovery for BLMIS customers with allowed claims.”
Geoffrey North, a partner at BakerHostetler, the court-appointed counsel to the SIPA trustee, added: “The SIPA trustee’s motion asks that the agreement should be approved because it confers a significant benefit to the BLMIS Customer Fund, avoids lengthy, burdensome, and expensive litigation and because it represents a fair and reasonable compromise of the SIPA Trustee’s claims and the customer claim.”
Bernard L Madoff Investment Securities, Irving H Picard, Cayman, Senator Fund SPC