Firm Successfully Closes Sale of Madoff Customer Claims

Recently, the Firm represented 217 Canner Associates, LLC, as the liquidating trustee for Greenwich Sentry, LP and Greenwich Sentry Partners, LP (each a “Greenwich Fund”), in connection with the successful auction and sale of the Greenwich Funds’ $37 million customer claims against the liquidation of Bernard L. Madoff Investment Securities LLC (“BLMIS”) and in connection with making a second distribution in the amount of $17 million to the claims of injured Greenwich Fund investors. The Greenwich Funds were domestic hedge funds included in the Fairfield Greenwich Group that were 100 percent invested in BLMIS. On November 19, 2010, the Firm filed the Greenwich Funds for jointly administered Chapter 11 bankruptcy proceedings in the United States Bankruptcy Court for the Southern District of New York, at which time the funds held only $3 million in tangible assets and over $200 million in liabilities. Since that time, the Firm has represented the Greenwich Funds and their liquidating trustee in connection with successfully confirming the Greenwich Funds’ reorganization plans and related settlement agreements with the BLMIS Trustee, monetizing assets and recovering tens of millions of dollars, satisfying creditor claims pursuant to the funds’ reorganization plans, and distributing a total of over $28 million to date to the claims of injured Greenwich Fund investors. In re Greenwich Sentry, LP and 217 Canner Associates, LLC, Liquidating Trustee, Case No. 10-16229 (Bankr. S.D.N.Y.) (SMB).