Motion to Approve Stipulation/Settlement and Compromise of Controversy Between the Trustee and RBC Capital Markets, LLC. Notice Served on 1/10/2017, Filed by Joel I. Sher. Responses due by 1/31/2017 (1/10/17)
RBC has agreed to pay the Trustee $30,125,000.00 in full and final satisfaction of any and all claims, demands, obligations, liabilities, and causes of action of whatsoever kind and nature asserted in, which could have been asserted in, arising out of or related to the allegations set forth in the Complaint and/or the District Court Action, including, but not limited to, claims arising out of or related to any repo transactions entered into between RBC or any of its affiliates and any of the Debtor releasing Parties, margin calls in respect of such transactions, and the liquidation of collateral posted by the Debtor Releasing Parties in respect of such transactions.
Payment will be made within 10 business days of entry of an order granting this Motion approving the Settlement Agreement in its entirety.
Each Party shall bear its own legal fees, costs, and expenses.
Within three business days after receipt of the Payment by the Trustee, (i) the Parties shall file with the Circuit Court a stipulation of dismissal of the Consolidated Appeal with prejudice, and (ii) the Trustee shall file a line with the District Court marking the Judgment as settled and satisfied.
On the 8/26/15, the District Court (Judge George L. Russell, III) issued a Memorandum Opinion and Order [Dkt. Nos. 152 and 153 in District Court Action, respectively] denying RBC’s Motion for Summary Judgment, granting the Trustee’s Cross Motion for Summary Judgment, and entering judgment in the amount of $26,259,118 plus prejudgment interest at the rate of nine (9) percent from August 14, 2007 through the date of judgment.
In the Memorandum Opinion, the Court ruled, inter alia, that RBC breached the MRA by failing to provide credit to TMST for the liquidated MBS in the amount of the price for the MBS from a generally recognized source determined as of the default date and that certain take down prices assigned by RBC to the MBS on the default date were the relevant and appropriate measure of damages as compared to the amount actually credited by RBC.
1 The amount of the Judgment with pre-judgment interest totals $45,256,330.87 (inclusive of $18,997,212.87 of pre-judgment at the rate of nine (9) percent from August 14, 2007 through the date of judgment.
Source: PACER [Docket 2472]
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