US court backs banks in dollars 140m Maxwell case
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.THREE banks have won a dollars 140m ( pounds 72.5m) court battle in the US against the administrator of the late Robert Maxwell's American publishing arm, Maxwell Communication Corporation, writes John Willcock.
The administrator, Price Waterhouse, which is winding up MCC, yesterday lost its case in the Bankruptcy Court of the Southern District of New York.
Price Waterhouse tried to assert that payments by MCC of more than dollars 140m to Barclays Bank, National Westminster Bank and Societe Generale before MCC's collapse could be recovered from the banks under American laws. The banks maintained that US law should not be applied to the payments in question and the Bankruptcy Court upheld this view.
Price Waterhouse has not yet decided whether to appeal.
A spokeswoman for National Westminster said: 'Naturally we are pleased at the outcome and we have always held the view that this action in the US courts was inappropriate.'
Barclays commented: 'The judgment has important ramifications for international insolvency procedures and we are pleased with the court's decision.'
MCC went into administration in December 1991. Since then Price Waterhouse has accepted creditors' claims against MCC totalling more than dollars 3bn as bona fide. A further dollars 1bn remains under consideration. The administrator plans to make a payout of 33p-43p in the pound to creditors. The timing of this payout depends on outstanding legal action by the liquidators of the Maxwell pension funds against Price Waterhouse. The pension funds lost more than pounds 440m, and a court hearing into their claims to the funds held by MCC's administrators will held in London in October.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments