Defunct brokerage Lehman Brothers Inc., which hasn’t paid institutional creditors a dime of its $25 billion hoard after four years in liquidation, is facing louder demands to settle fights with affiliates and pay up.
The trustee liquidating Bernard L. Madoff’s bankrupt brokerage won court approval to make a second customer payment that may reach $2.4 billion, or seven times as much as the con man’s investors have received so far.
Peregrine Financial Group Inc. employees gathered for their annual holiday party at the River East Art Center, overlooking the Chicago River. After enjoying appetizers and an open bar, they heard the kind of somber note you don’t expect from the boss at such a fete: Even businesses that get off to a good start aren’t guaranteed to last.
A customer of Peregrine Financial Group Inc., whose founder is accused by regulators of misappropriating more than $200 million, sold a claim on the bankrupt futures brokerage for about 20 cents on the dollar, a trader said.
Irving Picard, the trustee liquidating Bernard L. Madoff’s bankrupt brokerage, asked a judge to reject customer objections to a second payment, saying their arguments would cut the payout by $1 billion.
Customers’ claims on Peregrine Financial Group Inc., whose founder is accused by regulators of misappropriating more than $200 million, may fetch less than a quarter of their value in the wake of the firm’s bankruptcy, a trader said.
Hedge funds Perry Capital LLC and Solus Alternative Asset Management LP are fighting over whether they had a contract when they agreed to trade $195 million of claims on Bernard Madoff’s bankrupt firm, amid rising prices on the claims.
Customers of Bernard Madoff’s brokerage, who have received just $333 million from the liquidator of the con man’s estate, will get a second payment of $1.5 billion to $2.4 billion, an amount some investors found disappointing.