MRU Holdings settlement resolving $11.33 million claims approved

By Kali Hays

New York, March 31 - MRU Holdings, Inc.'s Chapter 7 trustee Ian J. Gazes obtained approval for a settlement agreement resolving claims of $11.33 million from Longview Marquis Master Fund, LP and Summerview Marquis Fund, LP, according to a Monday order filed with the U.S. Bankruptcy Court for the Southern District of New York.

Under the settlement agreement, Longview is allowed one secured claim of $116,095 with a balance of $8.37 million being reclassified as an unsecured non-priority claim, while Summerview is allowed one secured claim of $38,905 with a balance of $2.81 million being reclassified as an unsecured non-priority claim, according to the order.

As previously reported, Gazes said that the claims were based on two notes in a total original principle amount of $11.2 million.

The claimants asserted that the notes were secured by pledged collateral consisting of all of the capital stock and equity interests of wholly owned subsidiary MRU ABS LLC and some account collateral consisting of the MRU deposit account established to deposit cash flow from the MRU Student Loan Trust 2007-A.

Gazes said he believed that the Longview and Summerview claims were not fully secured and that any secured portions extend, at most, to only a small portion of the liquidation proceeds realized to date.

MRU, a New York-based provider of student loans, filed for bankruptcy on Feb. 6, 2009. Its Chapter 7 case number is 09-10530.

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