Bank of New England Chapter 7 trustee partially settles estate fund distribution dispute

By Caroline Salls

Pittsburgh, Jan. 11 - Bank of New England Corp.'s Chapter 7 trustee reached an agreement in principle with holders of each of the company's senior and junior debt securities that partially settles an ongoing dispute on the distribution of remaining estate funds, according to a news release.

Under the settlement, which was the result of a bankruptcy court-approved mediation session held on Nov. 22, distribution of remaining estate funds to holders of debt securities will be funded by a $25 million distribution by the Chapter 7 trustee, of which 50% will be paid to the indenture trustees for the senior debt securities and 50% will be paid to the indenture trustees for the junior debt securities.

The agreement is subject to approval by the U.S. Bankruptcy Court for the District of Massachusetts.

Bank of New England is based in Boston.

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