1031 Trustee Asks Court To OK $92M In Settlements

Law360, New York (September 15, 2009, 6:51 PM EDT) -- The Chapter 11 trustee overseeing 1031 Tax Group LLC's bankruptcy has asked for court approval of five groups of settlements with insurers, former 1031 attorneys, former owners of 1031 intermediaries and Wachovia Bank NA, which will provide a total of $92 million in funding for 1031's reorganization plan.

Trustee Gerard A. McHale said the settlements would provide sufficient funds to pay administrative expenses and priority claims as well as an initial distribution to general unsecured creditors in his motion in the U.S. Bankruptcy Court for the...
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