Dreier Trustee's $52M Deal With Hedge Fund Approved

Law360, Wilmington (September 26, 2011, 4:57 PM EDT) -- A New York bankruptcy judge cleared a $52 million settlement Friday between the trustee overseeing the liquidation of Dreier LLP and a hedge fund that fell victim to a Ponzi scheme perpetrated by the defunct law firm’s imprisoned founder.

U.S. Bankruptcy Judge Stuart M. Bernstein approved the deal, which reduces Eton Park Capital Management’s $84 million in claims against Dreier by nearly 38 percent.

In return, trustee Sheila M. Gowan has agreed to drop nearly $4 million in preference and fraudulent transfer claims against the hedge...
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