Court OKs $14M Ch. 11 LandAmerica Deal With SunTrust

Law360, New York (June 17, 2011, 6:55 PM EDT) -- A Virginia bankruptcy judge on Thursday approved a $14.3 million settlement between SunTrust Banks Inc. and the liquidation trustee charged with recovering money for creditors of a LandAmerica Financial Group Inc. subsidiary over the sale of auction rate securities.

With the agreement, approved at a hearing by U.S. Bankruptcy Judge Kevin Huennekens, recoveries for many of the creditors of LandAmerica 1031 Exchange Services Inc. will be 66.5 percent, following previous settlements, including a $95.5 million deal with a second bank in October.

Since the debtors' approved...
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