Thybo Asset Management Settles Madoff Clawback Claim for $46M

Oct 26 2015 | 2:04pm ET

Thybo Asset Management, a family office turned hedge fund of funds, has agreed to settle a Madoff-related clawback claim instituted in 2009 by bankruptcy trustee Irving Picard. 

According to the settlement, which was filed with the U.S. Bankruptcy Court in New York on Friday, Thybo agreed to pay $46.6 million of the original $62 million sought by Picard in allegedly fraudulent transfers during the six years prior to the collapse of the ponzi scheme orchestrated by Madoff through his Madoff Investment Securities LLC. At the same time, Thybo will be allowed a total claim of $186 million against the Madoff estate, from which the $46.6 million will be deducted.

Upon closing of the settlement, Thybo will be entitled to catch-up payments related to the five distributions to Madoff customers approved by the Bankruptcy Court to date, as well as SIPC relief of $500,000, according to court filings. The catch-up payments have totaled 48.8% of allowed claims, meaning Thybo is entitled to $91.3 million (48.8% of the $186 million plus the SIPC payment) less the $46.6 million. Ultimately, the Trustee will pay Thybo $44.7 million, and it will thereafter be entitled to any further ratable distributions owed on its allowed claim as approved the Bankruptcy Court. 

Picard originally sued Thybo and three related funds on July 15, 2009, claiming it knew, or should have known, that Madoff’s business was based on fraud. The funds received at least $62 million in transfers that are recoverable under bankruptcy law, according to the filings. trustee said.

Wiesbaden, Germany-based Thybo began as a family office originally formed by the treasury unit of the group of companies owned by the Thyssen Bornemisza family, and has been in the funds-of-hedge funds business since around 1989. The secretive company has affiliates in Monaco, Malta and the British Virgin Islands. 

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