The Second Circuit Court of Appeals sustained a $213 million judgment against Ira Rennert relating to the bankruptcy of his company Magnesium Corp. of America. While the appeal was pending last year, the trustee auctioned off part of the judgment.
Gerchen Keller and Burford Capital
Gerchen Keller won the auction, paying $26.2 million for the right to the first $50 million of recovery. Burford has since acquired Gerchen Keller for $175 million last December. Burford will now be able to recover as the Second Circuit affirmed the 2015 jury verdict against Rennert. The jury found Ira fraudulently conveyed $100 million from Magnesium Corp. prior to bankruptcy proceedings initiated in 2001.
Rennert is now liable for that amount plus interest in order to repay Magnesium Corp.’s creditors.
Read full article at Forbes.com
Reviewed by Marc Lesnick.