A judge approved a settlement between the trustee in charge of Jeffrey Soffer's failed Fontainebleau Las Vegas casino project and the company's former directors and officers that will put millions in creditors' pockets, Dow Jones Daily Bankruptcy Review reported today. In an order signed last week, Bankruptcy Judge A. Jay Cristol approved the deal, which calls for $27.5 million to go into the coffers of chapter 7 trustee Soneet R. Kapila, the man in charge of Fontainebleau's estate. The judge had rejected a prior settlement, which was opposed by a group of term lenders who were suing Fontainebleau's officers and directors for fraud, charges those parties denied. Those lenders support the new settlement, which calls for a payment of $25 million of directors' and officers' insurance money to creditors.
