Interlachen Harriet Investment v. Kelley, et al., No. 11-6013 (8th Cir. 2011)
Annotate this CaseAppellant appealed the bankruptcy court's approval of a multi-million dollar, global settlement in one of the largest Ponzi scheme bankruptcies in American history. The settlement had been substantially consummated and the appeal had been rendered largely moot. The court held that the bankruptcy court did not abuse its discretion in approving the settlement where the record upon which the bankruptcy court based its approval of the settlement was sufficient and where the settlement satisfied the Flight Transportation/Drexel factors. Accordingly, the order of the bankruptcy court approving the settlement was affirmed.
Court Description: Bankruptcy - Settlement Approval. Interlachen Harrient Investments, Ltd, appeals the bankruptcy court's approval of a multi million dollar, global settlement spanning multiple estates and proceedings in four separate courts. The bankruptcy court did not abuse its discretion in approving the settlement, as the record upon which the bankruptcy court based its approval was sufficient and the settlement satisfies the reasonableness factors known as the Flight Transportation or Drexel factors. The bankruptcy court's determination that these factors weigh in favor of approving the settlement was not clearly erroneous.
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