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July (Reuters) – Sembcorp Marine (SCMN.SI), the world’s second largest offshore rig-builder, said on Monday its subsidiary has signed a contract to sell a jack-up drilling rig worth $356 million to a unit of Norway’s Seadrill Ltd (SDRL.OL).
The harh environment drilling rig, originally ordered by another owner that went into liquidation, would be chartered to Norwegian oil explorer Statoil (STL.OL). (Reporting by Nopporn Wong-Anan; editing by Dhara Ranasinghe)
A Senate inquiry has been told it should be made illegal for administrators to also act as liquidators of a company because they have a vested interest in failures.
Lawyer Steve McNamara told the hearing in Adelaide that administrators can make more money from liquidations which means there is little incentive for them to save companies from collapse.
He told the Senate Economics Committee legislative change is needed so different companies are forced to handle the processes.
“There is a huge conflict that the administrator has because an administration generally they’ll earn between five at the low end up to maybe $30-40,000 but if they sit there and look at the company and see what sort of asset backing it has it is their utmost incentive to put that company into liquidation,” he said.
The Parkes Shire Council is celebrating a High Court decision which will allow local governments to pursue claims against the collapsed bank Lehman Brothers, both in Australia and overseas.
Parkes was one of the councils that challenged a deed of company arrangement which meant they would recover less than 10 cents in every dollar they had invested.
The Federal Court agreed with the councils that the deal was invalid, Lehman entities then challenged that decision, but the High Court yesterday upheld the Federal Court ruling.
The general manager of Parkes Shire, Alan McCormack, says there is still a way to go before the council sees any money, but there is now light at the end of the tunnel.
“This decision means that we will certainly do a lot better than we originally thought we would, substantially better than that,” he said.
“We’ve just got to wait and see how well we fare out of the liquidation before we take our next steps.
“We will now go to the liquidator for Lehman Brothers Australia and cut a better deal.
“Hopefully that may end the action against Lehman Brothers Australia.
“If we can’t get a better deal then we will look to, in concert with quite a few other councils, we will look to Lehman Brothers incorporated and try and get recovery from that American arm.”
The High Court has cleared the way for Australian creditors of the failed investment bank Lehman Brothers to be able to sue overseas arms of the company.
The court has dismissed an appeal by Lehman Australia and Lehman Brothers Asia Holdings over an agreement struck with creditors.
The original agreement was part of a settlement arranged with administrators, and approved by a majority of creditors due largely to the votes of Leman Brothers’ overseas operations.
The agreement banned the creditors from suing overseas arms of Lehman Brothers.
However, councils from New South Wales and Western Australia objected and convinced the Federal Court that the agreement was invalid.
The full bench of the court ruled Lehman Australia should be wound up.
Efforts by the failed investment bank to overturn the ruling have failed in the High Court, leaving Australian creditors free to make claims against Lehman Brothers entities overseas.
The law firm acting for the councils, Piper Alderman, says the original deed was unfair, and prejudicial to the interests of many smaller investors in Lehman Australia.
“The decision of the High Court not only achieves clarity for our clients but it allows them to pursue claims against other Lehman Brothers companies,” said the partner leading the litigation, Amanda Barton, in a statement.
“If the DOCA (deed of company arrangement) hadn’t been set aside, they would not have been able to make further claims and potentially share in any improved returns from the assets of Lehman Australia.”
She says the High Court’s decision will entitle the councils to a better return on their investments than the 2-13 cents in the dollar expected under the original agreement.
“Although it won’t be a quick process, liquidation will achieve a better return for our clients than they would have received under the DOCA,” she added.
“We’re looking forward to working closely with the liquidator to make sure our clients’ claims are assessed as quickly as possible.”
A building company in Alice Springs that went into liquidation at the start of March has left a dozen homes unfinished and many contractors with outstanding bills.
The liquidator of builder Randal Carey’s company, Carey Builders, says creditors’ claims now exceed half a million dollars.
The liquidator, Alan Scott says the amount the company owes will continue to grow.
“The amount owed at the moment as best we can work out is about $550,000,” Mr Scott said.
“But there are still further creditors coming to light, including a claim from the Tax Office, which we are not quite sure of the quantum of that yet.
“But it will certainly be a reasonably large number, but I would anticipate over $100,000.”
The company’s sole director is Randal Carey’s wife Bronwyn Carey.
Mr Scott said his team was formulating claims against the director, and analysing the company’s transactions to track any transfer of assets.
“Most of the claims we will have will be against the director for breaches of director’s duties in some way,” Mr Scott said.
“That is probably the only result we will end up getting for the creditors.
“Now whether that is going to give a return to the creditors or not I am not really sure at this time.”
Alice Springs resident Rebekah Axe has been left with an unfinished home and no money to pay for its completion.
She wants the Territory Government to introduce an insurance scheme to cover non-completion to protect people building homes.
Territorians need protection just as much as anybody else in Australia.
Real Estate agent Andrew Doyle says the scheme was proposed more than three years ago.
“If the NT government had that insurance in place we would not be having this discussion,” Mr Doyle said.
The Government says it is committed to introducing the scheme but wants to learn from the mistakes of other jurisdictions.
A spokesman said the Government was helping creditors to find alternative contractors to complete their homes.
The Opposition’s Adam Giles said the Labor Government promised home warranty insurance in 2001.
“Contractors are still going without money, employees are suffering in those companies,” Mr Giles said.
“This is just another failure that’s been 10 years in the making and people who are trying to build their pride and joy in a new home are left suffering.”
A politician says the Northern Territory Government needs to explain how the building company, Carey Builders, was able to continue work in the NT.
The company went into liquidation earlier this month, leaving at least 12 homes in Alice Springs unfinished.
The Member for Braitling, Adam Giles, says he has launched a freedom of information application to find out what happened.
“I’ve written to the Northern Territory Government asking them to provide and release all information that they have in relation to Carey Builders – what they knew in regards to the licensing of Randall Carey as a builder in the Northern Territory,” he said.
Mr Giles says the Government needs to release all the information it has about the insolvent company.
“It’s important that the Government manages a transparent model on this important issue so that people who have been trying to build their homes can have knowledge that the Government did everything that it could in this situation,” he said.
The Northern Territory Planning Minister, Gerry McCarthy, says Mr Giles will be briefed on the matter on Tuesday.
Members of the Robertson Bowling Club have adjourned a decision on whether to send the club into voluntary administration.
The club has a debt of more than $250,000, due largely to steep drops in poker machine revenue during the past two years.
The decision on the club’s future has been moved to May 2, giving the club time to complete a more accurate assessment of its financial position.
The club’s president, Bill Brenning, says most members want to keep the club alive but this may mean selling club property.
“We don’t really want to sell any of our assets but if rather than closing, closing altogether which would happen with liquidation, that’s the end of the club; it would be a lot better to sell off some of the assets to keep us open,” he said.
The club is unusual in that it owns the land it is on and Mr Brenning says a change in how the land is zoned could save the club.
“We’ve got three-and-a-quarter acres of freehold land so we have a little bit of a problem with the zoning at the moment, it’s only zoned open space but if we can get the zoning changed then the land will be a lot more valuable than what it is now,” he said.
The Darwin steel company Transcon has gone into liquidation, leaving 30 workers out of a job.
Transcon made the announcement today ahead of a creditors’ meeting next week.
The company is yet to comment on why it went bust, but steel workers calling into the company office at Berrimah today say they have been aware for a few weeks that work in the company had been running out and it was struggling with cash flow.
Workers say the company had been hoping to win a steel construction contract with a Territory aluminium processor but that fell through.
New details have emerged that show a bankrupt Alice Springs builder has a record of owing money to creditors interstate.
Randall Carey’s company Carey Builders is in liquidation.
Creditors from Alice Springs and Adelaide are owed hundreds of thousands of dollars and at least a dozen new home-buyers have been left with unfinished houses.
The ABC has seen documents that show Mr Carey was deregistered as a builder in Queensland in 1997.
His previous company, also called Carey Builders, owed hundreds of thousands of dollars to creditors in Western Queensland.
Mr Carey came to the Territory and went bankrupt as a sole trader but was working in Alice Springs under a new company of which his wife was the director.
Complaints were made to the Australian Securities and Investments Commission about Mr Carey last year but ASIC will not confirm if it is taking court action against him.
A Northern Territory accountant says Mr Carey should never have been allowed to trade.
David Pemberton was one of the people who complained to ASIC.
Mr Pemberton says ASIC should have investigated Mr Carey earlier.
“I think it’s very, very unfortunate for all of the people affected in Alice Springs that a lot of this misfortune would not have happened if ASIC, who claim to be the corporate regulator, got off their arses and did their job,” Mr Pemberton said.
An ASIC spokesman says the commission will not be commenting on the issue.
Troubled English Premier League club Portsmouth received a boost in its attempt to avoid liquidation overnight as the British tax authority accepted the team’s move into administration.
Officials at HM Revenue and Customs had insisted Portsmouth’s owner Balram Chainrai did not have the legal right to put the club into administration, but they have now abandoned that claim.
Chainrai appointed Andrew Andronikou as the club’s administrator last month and he cut 85 jobs at the club on Wednesday (local time).
“The Revenue has accepted the administration is valid,” a spokesman for the club said.
FA Cup semi-finalist Portsmouth, currently bottom of the Premier League, now faces a nine-point deduction for entering into administration and the punishment is almost certain to lead to its relegation at the end of the season.
Pompey have debts totalling over 80 million pounds ($131.64 million) and became the first Premier League club to enter administration last month.
Massive savings are needed to keep the club afloat but players – the highest earners on the payroll – cannot be made redundant due to protection afforded to them by the Professional Footballers’ Association.
On Wednesday, 85 of the cash-strapped club’s employees were made redundant.
Andronikou has considered trying to persuade the Premier League to let him sell players outside the transfer window and then get them loaned back to Portsmouth, where they would become non-playing members of the squad.
But with an FA Cup semi-final against Fulham or Tottenham looming, Andronikou is adamant no players will leave Fratton Park before the Wembley showdown next month.
-AFP
(Adds comments from Hilco and Patriarch, background)
By Phil Wahba
NEW YORK, April 16 (Reuters) – An $87.6 million bid by a joint venture of investors Hilco Consumer Capital and Gordon Brothers Brands won the auction for the assets of bankrupt camera maker Polaroid, a federal bankruptcy judge ruled on Thursday.
After a 16-day auction process, the joint bid by Hilco and Gordon Brothers was deemed the “best offer” by Judge Gregory Kishel of the U.S. Bankruptcy Court for the District of Minnesota, beating out private equity firm Patriarch Partners’ higher $88.1 million bid, which included more cash but left fewer existing Polaroid assets with its estate.
The auction process was reopened twice, the first time following objections by creditors, the second time last week after Patriarch asked that bidding be continued.
Hilco and Gordon Brothers, which specialize in brand licensing, are investment divisions of the large liquidation firms The Hilco Organization and Gordon Brothers Group. The joint venture partners have said they intend to keep the Polaroid brand alive.
“The Polaroid brand has immense global appeal that translates into almost all categories,” Hilco Consumer Capital Chief Executive Jamie Salter said in a statement.
A spokesman for Patriarch Partners told Reuters the firm will appeal the ruling, adding, “In an open auction things are supposed to be transparent and the highest bidder is supposed to win.”
Hilco and Gordon have been joint venture partners in their recent acquisitions of The Sharper Image and Bombay brands.
Patriarch. whose portfolio includes Arizona brand iced tea and mapmaker Rand McNally, had said it intended to rebuild Polaroid as a company.
A spokesman for a Polaroid creditor, Ritchie Capital, told Reuters, “The compensation is trivial compared to the value that could have been realized through a reorganization.”
The “stalking horse bidder,” Luxembourg-based Genii Capital SA, started the bidding for the company with a $42 million offer on April 1.
Polaroid filed for bankruptcy protection in December 2008, amid an investigation into the founder of its owner, Petters Group Worldwide.
The case is In re: Polaroid Corp et al., U.S. Bankruptcy Court for the District of Minnesota, No. 08-46617. (Reporting by Phil Wahba; Editing by Gary Hill)
NEW YORK, April 15 /PRNewswire/ — King Penguin Properties, LLC (KPP) is
pleased to announce the addition of David Riehl to its distressed real estate
team. Mr. Riehl joins a distressed real estate fund that will focus on
acquiring assets in the five boroughs of New York City.
Mr. Riehl most recently worked as a distressed debt analyst for Cedarcrest
Fund, LP in New York where he analyzed and purchased troubled bank loans from
US banks, The FDIC and The National Credit Union Administration. He has
performed extensive due diligence on distressed commercial properties located
in the New York metro area and in other major cities across the United States.
He has experience with the overall start-up process of a private investment
fund including legal formation, fundraising, asset acquisition, financial
reporting and fund management.
Mr. Riehl is a member of the National Association of Bankruptcy Trustees and
The International Debt Buyers Association. He has experience in dealing with
workout attorneys to solve creditor disputes and has been both a secured and
unsecured creditor in a number of bankruptcy cases. He has initiated legal
proceedings in roughly 75 cases and has significant experience with the
foreclosure process. In addition to his workout experience, Mr. Riehl managed
a portfolio of REO properties in upstate New York acquired through distressed
debt investments and oversaw their liquidation for a significant return on
investment.
Mr. Riehl started his career at Merrill Lynch in Washington, D.C. where he
worked on a team of financial advisors. Mr. Riehl holds a Bachelor of Arts
from Webster University, St. Louis and a Graduate Certificate in Business from
Columbia University in the City of New York.
About King Penguin Properties, LLC:
Founded in 1998 and based in New York City, King Penguin Properties owns and
manages multi-family, residential, office, and commercial property in North
America and Europe. For more information please refer to their website at
www.kpp.us.com
SOURCE King Penguin Properties, LLC
Norah Lawlor, Lawlor Media Group, +1-212-967-6900, Norah@lawlormediagroup.com
SINGAPORE, April 15 (Reuters) – Oil-rig builder Sembcorp
Marine may be in focus on Wednesday after a large customer,
Petroprod, was placed under provisional liquidation. Petroprod
had placed orders worth over $500 million with the Singapore
firm, according to Business Times.
U.S. stocks fell on Tuesday as a surprising drop in retail
sales dented hopes the recession was abating, while financial
shares slid on fears that Goldman Sachs’ (GS.N) share offering
could prompt other banks to follow suit.
———————-MARKET SNAPSHOT @ 2359 GMT ————
INSTRUMENT LAST PCT CHG NET CHG
S and P 500 .SPX 841.5 -2.01% -17.230
USD/JPY 98.98 0.19% 0.190
10-YR US TSY YLD 2.7954 — 0.005
SPOT GOLD 888.1 -0.08% -0.750
US CRUDE CLc1 49.08 -0.67% -0.330
DOW JONES .DJI 7920.18 -1.71% -137.63
ASIA ADRS .BKAS 98.16 -1.95% -1.95
————————————————————- >
Weak retail sales, Goldman hit Wall St; eBay up late [.N] >
Dollar and yen gain on renewed safe-haven bid [USD/] >
Bonds climb on falling retail sales data [US/] >
Gold ends a tad lower but near-term strength seen [GOL/] >
Oil slips below $50 on demand, inventory forecasts [O/R]
Stocks and factors to watch:
— SEMBCORP MARINE (SCMN.SI)
– Sembcorp Marine said a large customer, Petroprod, has
been placed under provisional liquidation. J.P. Morgan said the
potential order-book cancellations may outweigh the positive
effect of a gas contract win by another Sembcorp unit, but kept
its “overweight” call on the rigbuilder. [ID:nSN4E51621]
— SINGAPORE AIRLINES (SIAL.SI)
– The world’s second-biggest airline by market value may
be in focus after Singapore and Malaysia agreed to expand their
bilateral air services agreement, which would give carriers of
both countries the right to operate between Singapore and six
new Malaysian destinations from June 1.
— PARKWAY HOLDINGS LTD (PARM.SI)
– The healthcare services provider said on Tuesday that
Chief Operating Officer Daniel Snyder had decided not to renew
his three-year job contract for personal reasons
[ID:nSN4E21031]
— SINGAPORE PRESS HOLDINGS (SPRM.SI)
– DBS Vickers downgraded Singapore Press Holdings (SPH) to
“hold” from “buy”, citing the 25 percent rise in the newspaper
publisher’s share price since the brokerage made its “buy”
call.
– LIAN BENGGROUP (LIBG.SI)
– The construction firm reported on Tuesday its net profit
rose 31 percent to S$11.4 million ($7.60 million) for the nine
months ended Feb 28, 2009 mainly on an increase in construction
activity. [ID:nSN4E91001]
– Singapore’s benchmark Straits Times Index .FTSTI rose
1.08 percent to 1,897.02 points on Tuesday.
– The Dow Jones Industrial Average .DJI fell 1.71 percent
to 7,920.18 points. The Nasdaq Composite Index .IXIC was down
1.67 percent to 1,625.72 points.
($1=1.501 Singapore Dollar)
(Reporting by Eveline Danubrata; Editing by Kevin Lim and
Muralikumar Anantharaman)
SINGAPORE, April 15 (Reuters) – The benchmark Straits Times
Index .FTSTI was down 2.06 percent as of 0130 GMT on
Wednesday.
The following stocks were on the move:
** SEMBCORP MARINE FALLS ON ORDER CANCELLATION FEARS **
Shares of Sembcorp Marine (SembMarine) (SCMN.SI), the
world’s No. 2 oil-rig builder, fell as much as 9.4 percent on
Wednesday after it said a large customer had been placed under
provisional liquidation.
The customer, Cayman Islands-based PetroProd Ltd, had
placed orders worth over $500 million with the Singapore firm,
according to the Business Times.
Goldman Sachs reiterated on Wednesday its “conviction sell”
on SembMarine, citing the risks of order renegotiation and
cancellations. According to Goldman, PetroProd and related
firms account for nearly a quarter of the Singapore firm’s
order book.
Sembcorp Marine last traded at S$2.07, down 7.2 percent.
Rival Keppel Corp (KPLM.SI), the world’s largest rigbuilder,
fell 1.4 percent.
0130 GMT
(Reporting by Kevin Lim; Editing by Muralikumar
Anantharaman)
The Easter holiday weekend continues for one more day as some Asian markets were closed overnight leaving the USD unchanged-to-lower from Thursday as traders focused mainly on the crosses into the start of New York this morning. Volumes were understandable light and traders note two-way action dominated by tech factors continued.
Equities were higher overnight to start this week adding a bit to risk-acceptance putting the Greenback under slight pressure but the main focus remained the crosses with Yen rising against most of the major pairs; USD/JPY still encountering upside offers around the 100.80 area again with high prints at 100.73 before pulling back to the 100.50 area in early New York. Traders note that Japanese investors remain long of the Yen keeping the tone supportive on dips. Low prints in the USD at 100.22 with stops noted on a break of 100.10 some desks say.
GBP is higher holding slight gains with high prints at 1.4747 so far today; the rate opens New York around 1.4720 area with traders looking for a move over the 1.4780 area to trigger close-in stops. EURO is better from Thursday’s close after dipping under the 100 day MA over the weekend; high prints at 1.3218 with lows at 1.3125 making for a tighter range. Traders note a French name on the bid under the 1.3140 area suggesting possible official interest on dips; stops from model accounts noted above 1.3260 area arguing for tech and black box traders short the market on the dip under the 100 day MA.
USD/CHF is failing on the highs from last week despite a solid close over the 1.1550 area; highs at 1.1610 were offered and the rate fell through 1.1550 area for low prints at 1.1506 and is on the lows to open New York. Traders note liquidation stops likely placed around the 1.1490 area from momentum accounts that likely went long on the close over 1.1550.
USD/CAD had a tight range to start the week with highs at 1.2288 and lows at 1.2238; holding the 1.2240 area in early New York trade. Of all the pairs this morning the USD/CAD is looking to weakest some desks say due to the failure at the 1.2280 area near-term. Analysts suggest a close below the 1.2220 area will turn the charts negative arguing for a test of the 1.2180 area leaving the rate vulnerable to a further extension of losses from the 1.3000 area seen the past month.
In my view, the Greenback is continuing to consolidate the recent gains as corrective and not as strength. The USD is likely headed for a test of the lows seen after the break from the 3-year highs. I don’t see the underlying fundamentals as being overly supportive and should the equities markets continue to attract risk investors they will move cash as the sense of panic mitigates further. Look for the USD to remain two-way today through US data due tomorrow; likely the news will show continued contraction in the US economy suggesting potential for a weaker USD.
Overnight Asia/Europe
USD remains flat after thin holiday trade
Traders note light volumes and stops on both sides
Technical action drives early action
Today’s Economic Reports
All times EASTERN (-5 GMT)
None in the US
Bank holiday for most G-7 countries
Looking Ahead to Tuesday
All times Eastern (-5 GMT)
8:30am USD Core Retail Sales m/m
8:30am USD PPI m/m
8:30am USD Retail Sales m/m
8:30am USD Core PPI m/m
10:00am USD Business Inventories m/m
10:30am USD FOMC Member Evans Speaks
12:00pm USD Fed Chairman Bernanke Speaks
Forex Analysis by Jason Alan Jankovsky at ForexPros.com. For more details about Forex Trading and Tips for decent earnings through Forex Trading, Please check forexpros.com
(Repeats story transmitted earlier on Friday)
* S and P cuts ratings on debt due in 2013, 2014
* Says Chrysler would likely dissolve in event of bankruptcy
NEW YORK, April 10 (Reuters) – Standard and Poor’s Rating Services on Friday lowered its debt ratings on Chrysler CBS.UL loans due in 2013 and 2014, citing a lower potential recovery by debtors in the event of payment defaults by the carmaker.
Standard and Poor’s said it lowered by two notches its issue-level ratings on Chrysler’s senior secured first-lien term loan due 2013 to ‘CC’ from ‘CCC’. S and P said its downgrade indicates lenders can expect an average 30 to 50 percent recovery in the event of a payment default.
The ratings agency said its corporate credit rating was left unchanged, at ‘CC’, reflecting no change in its view of the likelihood of default by Chrysler from either a bankruptcy or a distressed debt exchange.
Standard and Poor’s lowered its issue rating on the carmaker’s senior secured second-lien term loan due 2014 by one notch to ‘C’ from ‘CC’, suggesting lenders can expect a negligible to a 10 percent recovery if a default occurs.
“The lowering of our issue ratings reflects lower recovery estimates, given our current view that Chrysler would be unlikely to emerge from bankruptcy as one reorganized entity,” Standard and Poor’s recovery analyst Greg Maddock said in a release.
“If Chrysler goes into bankruptcy, I would expect it to go into liquidation — that its assets would be sold in whole or in part,” Maddock said in an interview.
“Instead of being reorganized, there would be no carmaker after bankruptcy,” he said. (Reporting by Ransdell Pierson; Editing by John Picinich)
NEW YORK, April 10 (Reuters) – Victims of Bernard Madoff may be allowed to push the swindler behind a purported $65 billion Ponzi scheme into bankruptcy, a federal court judge ruled on Friday.
Despite objections from federal prosecutors, the U.S. Securities and Exchange Commission and the Trustee for the Liquidation of Bernard L Madoff Investment Securities LLC, U.S. District Court Judge Louis Stanton ruled that the alleged victims may go after Madoff’s assets that were not proceeds from his crimes.
The judge, of the Southern District of New York in Manhattan, said the U.S. bankruptcy code is the best and most experienced system to deal with the claims against Madoff’s assets, excluding those that prosecutors may force him to forfeit as proceeds from a crime.
“A Bankruptcy Trustee has direct rights to Mr. Madoff’s individual property, with the ability to maximize the size of the estate available to Mr. Madoff’s creditors through his statutory authority to locate assets, avoid fraudulent transfers and preserve or increase the value of the assets through investment or sale,” Stanton wrote in his opinion.
Madoff has pleaded guilty to masterminding Wall Street’s biggest ever investment swindle, involving as much as $65 billion in client funds. He could be ordered to prison for the rest of his life when sentenced in June. (Reporting by Ilaina Jonas; Editing by Jan Paschal)
NEW YORK (Reuters) – Victims of Bernard Madoff may be allowed to push the swindler behind a purported $65 billion Ponzi scheme into bankruptcy, a federal court judge ruled on Friday.
Despite objections from federal prosecutors, the U.S. Securities and Exchange Commission and the Trustee for the Liquidation of Bernard L Madoff Investment Securities LLC, U.S. District Court Judge Louis Stanton ruled that the alleged victims may go after Madoff’s assets that were not proceeds from his crimes.
The judge, of the Southern District of New York in Manhattan, said the U.S. bankruptcy code is the best and most experienced system to deal with the claims against Madoff’s assets, excluding those that prosecutors may force him to forfeit as proceeds from a crime.
“A Bankruptcy Trustee has direct rights to Mr. Madoff’s individual property, with the ability to maximize the size of the estate available to Mr. Madoff’s creditors through his statutory authority to locate assets, avoid fraudulent transfers and preserve or increase the value of the assets through investment or sale,” Stanton wrote in his opinion.
Madoff has pleaded guilty to masterminding Wall Street’s biggest ever investment swindle, involving as much as $65 billion in client funds. He could be ordered to prison for the rest of his life when sentenced in June.
Separately, firms that sent investors’ money to Madoff took in $790 million in fees and investors and authorities are trying to recover the money, according to The Wall Street Journal.
Banco Santander SA, one of the biggest so-called “feeders” to Madoff, earned $52.7 million in investment manager’s fees in 2007 and $43.3 million in 2006, the newspaper said in a story posted on Friday on its website.
Fairfield Greenwich Group, which was the biggest feeder fund, may have earned $400 million from 2005 to 2008 based on a lawsuit against the company filed by Massachusetts securities regulators, the newspaper said.
The USD continued to correct higher trough today’s New York trade reaching the best levels of the day against the majors shortly after the London fix; despite the rise in the Greenback the majors held important S/R levels during the day and remains in two-way action into the close. Technical trade was the rule for the most part as the lack of economic news kept traders focused on near-time price levels with stops helping to drive most of the intraday action.
GBP never traded back to the earlier high seen in late Europe this morning of 1.4961 but retreated finding layers of stops for a low print at 1.4668 before recovering more than a full handle and settling above the 1.4700 handle. Traders note that cross-spreaders for Yen liquidating Yen crosses as well as weakness in EURO helping to drive the rate lower but Cable still held technical support at the 1.4720 area. EURO also took a dive dropping from the 1.3550 area in early trade for a low print at 1.3356 once again holding tech support ahead of the 1.3330 area; the rate also seeing liquidation from Yen crosses.
EUURO recovered back to the 1.3400 area and is trying for a close above the 1.3400 handle suggesting that the dips are being bought. Traders note that volumes were light on the move lower and there was bid interest during the fix today. The rest of the majors all held under tech resistance after trying for highs; traders note that the tech levels seen from last week are back in play across all pairs. USD/CHF high prints at 1.1409 were under the tech level of 1.1420; the rate failing to hold the 1.1400 handle by the end of the day. USD/JPY held firm making the USD at the highest levels seen since last year but off its highs; high prints at 101.46 never challenged in New York and the rate is unable to hold the 101.00 handle into the close.
USD/CAD rallied to a high print at 1.2443 before dropping back under the 1.2400 handle; a late push back to the 1.2400 handle sees the rate holding around the 1.2405 area in light trade. All the rates either held their respective 100 day MA S/R levels or their recent Fib levels suggesting that all of today’s action was dominated by short-term traders and likely will repeat tomorrow. With a light economic calendar due tomorrow and into mid-week the USD will likely remain two-way for the next 24-48 hours. Look for the Greenback to be subdued overnight and respect current ranges.
Today’s US Dollar Trading
* USD reverses off lows to make highs in New York
* Majors respect existing S/R, stops in range drive most action
* Volumes lighter with most action ahead of the London fix
Overnight Preview
* Look for the Greenback to hold existing ranges
* Volumes likely to be light
Looking Ahead to Tuesday
All times Eastern (-5 GMT)
* 10:00am USD IBD/TIPP Economic Optimism
* 3:00pm USD Consumer Credit m/m
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UK Madoff liquidators file U.S. bankruptcy petition
MIAMI (Reuters) – The British liquidators of convicted swindler Bernard Madoff’s London securities trading firm filed a petition in U.S. bankruptcy court on Tuesday and sued Madoff’s brother for the return of a rare Aston Martin car.
The liquidators, appointed by England’s High Court of Justice for Madoff Securities International Ltd (MSIL), filed the case in federal court in West Palm Beach, Florida, under Chapter 15 of U.S. bankruptcy laws, which deals with insolvency cases involving more than one country.
The petition will allow the liquidators, Stephen John Akers, Mark Richard Byers and Andrew Laurence Hosking, “to marshal assets that may have been fraudulently transferred from MSIL to individuals residing with the jurisdiction of the Court,” court documents said.
In a companion lawsuit, the liquidators sued to recover a 1964 Aston Martin bought through “the improper and unauthorized diversion of funds from MSIL’s accounts,” court papers said.
Madoff, the disgraced New York financier who once headed the NASDAQ stock market, pleaded guilty on March 12 to running the biggest investment fraud in Wall Street history, involving as much as $65 billion. He was immediately jailed and could be sent to prison for life when sentenced in June.
MSIL, his London company, employed 28 workers, including 14 traders, at its offices in London’s Mayfair District, the suit said.
The company traded for Madoff’s personal accounts and those of his relatives, and the accounts were used by Madoff to buy “valuable personal assets such as luxury yachts, automobiles and furnishings for himself and members of the Madoff family,” the petition said.
Two wire transfers, made from an MSIL account last year and totaling 135,000 pounds, were used to buy a 1964 Aston Martin delivered to Madoff’s brother Peter Madoff, a director and manager of MSIL, at his home in Palm Beach, Florida, the lawsuit said.
MSIL suffered losses in excess of $235,000 as a result. The petition seeks the return of the car and punitive damages.
The liquidators asked the U.S. federal bankruptcy court to recognize the British liquidation case and filed an ancillary case under Chapter 15, which helps resolve cases involving debtors, assets and claimants in multiple countries.
Neither Peter Madoff nor his lawyer were immediately available for comment.
(Reporting by Jim Loney; Editing by Pascal Fletcher; Editing by Andre Grenon)