Wednesday, 10 February 2016
Last updated 13 hours ago
Dec 13 2011 | 2:12am ET
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.