Court: Whitebox CEO Must Pay Interest On Missed Divorce Payments

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.


In Depth

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

iCapital Network: The Trump Effect On Direct Lending

Feb 23 2017 | 4:21pm ET

The arrival of the Trump Administration has raised questions among private debt...

 

From the current issue of