Former customers of Bernard Madoff may soon recover an additional $496.8m (£317.6m), pushing the sum recovered by the trustee for Madoff customers above $10.3bn.
The extra sum comes as a result of a settlement with two “feeder funds” that was announced on Monday by the trustee liquidating the swindler's firm.
The settlement, with the Herald Fund SPC and Primeo Fund, both based in the Cayman Islands, is one of the largest obtained by the trustee, Irving Picard, since the failure of Bernard L. Madoff Investment Securities LLC in December 2008.
The total amount recovered so far equals about 59 per cent of the estimated $17.5bn of principal they lost in Madoff's decades-long Ponzi scheme. A hearing has been scheduled for 17 December. Nearly $6bn has been distributed so far.
"By any measure, the settlement terms are highly advantageous, not only to BLMIS direct customers with allowed claims, but also potentially to the indirect investors in the Herald Fund," Oren Warshavsky, a lawyer who negotiated the settlement for Picard, said in a statement.