About 300 creditors of the failed Ruden McClosky law firm can expect to receive a check this week for pennies on the dollar of what they were owed when the large Florida firm filed for chapter 11 protection in 2011, the Orlando Sun Sentinel reported today. A bankruptcy court approved a final distribution equal to 3 percent of the $7.6 million in claims allowed by the court. Combined with a 10 percent distribution in May 2015, the creditors are recovering $1.03 million of the $7.6 million. That $7.6 million in "allowed claims" was itself a fraction of the $73 million creditors claimed was owed when the firm declared bankruptcy. In 2015, Wells Fargo, the firm's secured lender, received $4.8 million, while priority tax and wage creditors were paid in full — about $58,000, said Joseph Luzinski, senior managing director of the debt restructuring firm Development Specialists Inc.
