In the bankruptcy case of esteemed law firm Girardi Keese, recent developments unearthed that Elissa Miller, the appointed bankruptcy trustee, has agreed to settle with the last defending litigation lender, Stillwell Madison. The agreement demands the trustee to pay $1.2 million to Stillwell Madison to resolve its secured claim. The resolution of this claim has paved the way for an estimated $322 million which can now be channeled towards unsecured creditors.
Stillwell Madison was not an arbitrary choice for a lender; it ties back to a case in 2019 involving Tom Girardi, the key figure of the firm. Madison had sued Girardi’s firm when it reneged on a commitment to repay a hefty $5.1 million loan. Initially, Madison had filed a secured claim amounting nearly to $7.5 million against the bankruptcy estate which is now settled by the mentioned agreement.
This settlement marks a major motion in the protracted bankruptcy grinding of Girardi Keese that now frees up a substantial amount of funds for unsecured creditors. However, this is just one piece of the puzzle with a substantial $332 million in claims awaiting resolution.
For additional details pertaining to this case, please refer to the coverage provided by The Recorder here.