Goldman, Bayou Creditors Head To Mediation Over $21M Claim

Law360, New York (July 9, 2013, 6:50 PM EDT) -- A Goldman Sachs Group Inc. unit is heading into mediation with the unsecured creditors of a bankrupt group of hedge funds to resolve their dispute over a $20.6 million claim, according to a court order filed Tuesday.

Mediation is the latest development in the long-running battle between the two, which stems from the creditors' allegations that Goldman Sachs Execution & Clearing LP, as its prime broker, allowed Bayou Group LLC to engage in fraudulent transfers before it collapsed under its Ponzi scheme in 2005.

Last July,...
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