FCStone May Keep $16M Sentinel Payout, 7th Circ. Rules

Law360, New York (March 19, 2014, 4:43 PM EDT) -- The Seventh Circuit on Wednesday reversed a lower court's ruling avoiding of a pair of transfers worth $15.6 million by bankrupt investment management company Sentinel Management Group Inc. intended to funnel money to INTL FCStone LLC, saying the transactions were permissible under bankruptcy law. 

The three-judge panel ruled that an Illinois district court erred last year when it allowed a bankruptcy trustee to avoid the transfers, which sent an extra $15.6 million in proceeds from Sentinel's bankruptcy to FCStone. While calling the decision “equitable” and acknowledging...
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