Peregrine Financial trustee seeks OK to settle $48 million of claims

By Kali Hays

New York, May 8 - Peregrine Financial Group, Inc.'s chapter 7 trustee, Ira Bodenstein, is seeking court approval of a company settlement with R.J. Zayed resolving prepetition claims totaling about $48 million, according to a Thursday motion with the U.S. Bankruptcy Court for the Northern District of Illinois.

Zayed filed the claims in November 2012 with the District Court of Minnesota on the behalf of several parties alleging fraudulent transfers connected to a Ponzi scheme operated by the estate of Trevor Cook.

Bodenstein denied the nature and amount of the claims, but in order to "avoid the cost and uncertainty of litigation," he negotiated with Zayed on the terms of a settlement, according to the motion.

Under the agreement, Zayed, on the behalf of his parties, is allowed one general unsecured claim in the amount of $10 million resulting in the disallowance of all other claims.

A hearing is scheduled for May 29.

Peregrine is a Chicago-based futures broker. The company filed for bankruptcy on July 10, 2012. The Chapter 7 case number is 12-27488.

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