The Minnesota courts don't seem to care that hedge fund executive Andrew Redleaf isn't doing as well as he used to be. The state Court of Appeals has upheld a lower-court ruling ordering the Whitebox Advisors CEO to pay his ex-wife as he agreed in their 2008 divorce settlement and adding a 10% interest rate on his arrears.
Redleaf agreed to pay his ex, Elizabeth, some $140.7 million if she agreed to keep her hands off his businesses, including Whitebox. About half of the settlement was to come in the form of monthly $1.5 million payments until 2013—but in 2009 and then again in 2010, Andrew Redleaf missed a few payments.
Redleaf cited changed "financial circumstances" and a decline in income, but a court last ordered him to pony up the $21 million in payments he'd missed. Redleaf did so, but began falling behind again later last year.
That's when a district court imposed the 10% annualized interest on missed payments, citing a Minnesota law on judgments in excess of $50,000. Redleaf complained that the rate is far in excess of market rates.
Redleaf is petitioning to reopen his divorce.