A federal district judge in Santa Ana, California affirmed the rulings of a bankruptcy court allowing the full amount of the $10 million claim of the Federal Deposit Insurance Corporation, acting as Receiver for American Sterling Bank (the “FDIC-R”), and approving the FDIC-R’s settlement with the debtor, the former executive of a failed bank. Bienert Katzman Littrell Williams LLP partners Steven Jay Katzman and Tony Bisconti represented the FDIC-R in this matter as the agency's approved outside counsel.  

The appellant, a third-party creditor of the debtor, objected to the settlement and sought to disallow the FDIC-R’s claim before the bankruptcy court.  The bankruptcy court, agreeing with and adopting BKLW's arguments, allowed the FDIC-R’s claim in the full amount and approved the settlement.  On appeal of the objecting creditor, the district court likewise adopted BKLW's analysis and arguments in their entirety.  The district court affirmed the bankruptcy court’s approval of the $10 million settlement and allowance of the FDIC-R’s claim in the debtor’s bankruptcy case.

A copy of the district court’s opinion is found here.

Read more:

• BKLW secures nearly $5 million for FDIC-R in ATIF reimbursement case in Florida, bklwlaw.com.
• Michigan federal court grants BKLW's motion to strike key defenses alleged against the FDIC-R, bklwlaw.com.