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This is a settlement for the Bankruptcy lawsuit.

New York, NY: (Jul-31-07) A lawsuit was filed against Norstan's, a women's budget retailer, on behalf of the company's unsecured creditors, alleging that the company had unscrupulous business procedures. The lawsuit asserted that in the months before declaring bankruptcy, Norstan's made distributions of $14 million to the company shareholders and thereafter leveraged its own stock to transfer $53 million to those same shareholders.

In a settlement reached, the creditors succeeded in obtaining a payout of a $67 million in the fraudulent transfer lawsuit arising out of the $53 million leveraged buyout and the distribution of $14 million to insider shareholders. The ruling approving the settlement was issued in the US Bankruptcy Court's Eastern District of New York on July 31 by Chief US Bankruptcy Judge Carla E. Craig. [EARTH TIMES: BANKRUPTCY SHARES]

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Published on Aug-1-07


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