Madoff trustee to recoup $35.4 mln from Merkin funds

The trustee seeking money for Bernard Madoff’s victims will receive $35.4 million in a settlement with two funds once run by Wall Street hedge fund manager J. Ezra Merkin. According to settlement papers filed late Friday with the U.S. bankruptcy court in Manhattan, the payment will be made by the Ariel Fund Ltd and Gabriel Capital LP feeder funds, through their receiver Bart Schwartz. In exchange, the trustee Irving Picard will deem valid about $367.9 million of the funds’ claims against the former Bernard L. Madoff Investment Securities LLC. Ariel and Gabriel Capital will be entitled to $179.5 million of “catch-up” distributions. More on Reuters here.