Kalo Secures Cardinal Settlement in New York Bankruptcy Court
Kalo, as the Receiver of Cardinal Management Inc (“Cardinal”), is pleased to announce court approval for a settlement with Irving H. Picard, as Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC ("BLMIS").
Upon closing of the settlement, which required approval from the Bankruptcy Court in New York, the parties have agreed to a mutual release of all claims.
Paul Pretlove, Managing Director of Kalo and Receiver of Cardinal, said: "We are happy to report that we have consensually resolved matters with Mr. Picard making tens of millions of dollars available to directly compensate investors in and through Cardinal for their losses. This is a favourable outcome for Cardinal and its stakeholders in comparison to other settlements that have been achieved with Mr. Picard and is largely as a result of the legal landscape and the facts of the case. Cardinal will now have an agreed claim of approximately US$107 million and will benefit from future distributions from the BLMIS estate rather than continued litigation, delay, costs and uncertainty for those directly affected.”
Cardinal is an international business company registered in St. Lucia that was a customer of BLMIS and maintained an account with it, which was opened in 2005 and at the time of Madoff’s arrest in December 2008 it was a net loser for approximately some US$96 million.
Paul Pretlove was assisted and supported in achieving the settlement by Jeff Butler of Clifford Chance, Grant Carroll of Ogier, Nadine Whyte of O’Neal Webster and Charlotte Caulfield and James Carr of Kalo.