Downey Financial's $374M Tax Refund Deal OK'd In Ch. 7

Law360, Los Angeles (June 05, 2013, 8:44 PM ET) -- A Delaware bankruptcy judge on Wednesday approved a settlement in which Downey Financial Corp. will be refunded $373.8 million plus interest in taxes overpaid during the five years leading up to its 2008 bankruptcy — although it isn't known who will ultimately receive the money.

U.S. Bankruptcy Judge Christopher S. Sontchi approved the settlement in which Downey Financial's trustee will drop his U.S. Court of Federal Claims litigation over the refund, which is the single biggest asset in the defunct lender’s Chapter 7 case. The $373.8...
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