Fremont, BNY Mellon Settle $14M Wire Transfer Spat

Law360, New York (August 5, 2009, 1:50 PM EDT) -- Bankrupt subprime mortgage lender Fremont General Corp. has reached a settlement with the Bank of New York Mellon to resolve a long-running breach of contract spat over a $14 million wire transfer.

In a motion to approve the settlement filed in the U.S. Bankruptcy Court for the Central District of California on Tuesday, Brea, Calif.-based Fremont said it had entered into a global settlement with BNY Mellon that would give the senior noteholder a general unsecured nonpriority claim of $10 million.

The dispute centered on an...
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