Investors in a failed Metropolitan Mortgage affiliate would get back $7.25 million in a proposed settlement that would also release most...
SPOKANE — Investors in a failed Metropolitan Mortgage affiliate would get back $7.25 million in a proposed settlement that would also release most board members from legal liability.
If approved by creditors, class-action plaintiffs and federal bankruptcy and district-court judges, Summit Securities would pay the investors from an insurance pool that is used to pay legal costs for former Metropolitan Mortgage and Securities officials.
The agreement proposed Monday would split the money among a trust set up to recover and repay money to creditors in the bankruptcy case, and investors who filed a class-action lawsuit against the company and its officials.
Met Mortgage and its subsidiary, Summit, filed for Chapter 11 bankruptcy protection in February. The collapse of Met Mortgage, once a $2.7 billion conglomerate, cost more than 10,000 investors some $450 million.
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The proposed settlement would include most former Summit Securities board members, who would be dropped as defendants in the fraud lawsuit.