Rennert Hit With $118M Verdict Over MagCorp Bankruptcy

Law360, New York (February 27, 2015, 2:34 PM EST) -- A New York federal jury found Ira Rennert liable on Friday for contributing to Magnesium Corp. of America’s 2001 bankruptcy, ordering the billionaire industrialist and his firm to pay $118 million in damages for taking shareholder dividends that allegedly left MagCorp too weak to survive.

The verdict, reached at the conclusion of a four-week trial, delivers a resounding win to Chapter 7 trustee Lee Buchwald in a tortured, 12-year legal saga and a windfall to the asset management firms now holding MagCorp’s defaulted bonds. Rennert’s firm, Renco...
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