Betsey Johnson Settles Debt With Creditor Steve Madden

Law360, New York (July 3, 2012, 3:41 PM EDT) -- Bankrupt clothier Betsey Johnson LLC on Monday asked a New York judge to approve a settlement with creditor Steve Madden Ltd. that would divvy up the proceeds from the fashion house's ongoing asset sale and open the possibility of a return for unsecured creditors.

The agreement resolves a number of disputes between the companies and sees Madden exchange a secured claim for a majority share of the sale proceeds and a $1 million unsecured claim.

Madden held a junior lien on Betsey Johnson as a result...
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