IndyMac Ch. 7 trustee settles lawsuit claims against former CEO Perry

By Caroline Salls

Pittsburgh, Feb. 10 - IndyMac Bancorp, Inc.'s Chapter 7 trustee requested court approval of a settlement reached with former chief executive officer Michael W. Perry, according to a Feb. 9 filing with the U.S. Bankruptcy Court for the Central District of California.

Trustee Alfred H. Siegel said in the motion that he sued Perry and eight IndyMac outside directors in November 2009 for breach of duty and corporate waste in connection with hundreds of millions of dollars in downstream transfers made shortly before IndyMac Bank, FSB failed.

In addition to hundreds of millions of dollars in money damages, the complaint seeks to disallow or subordinate all proofs of claim the defendants filed against the IndyMac estate, including Perry's claim seeking hundreds of thousands of dollars in allegedly unpaid compensation and an unliquidated amount for indemnification.

Under the settlement, the trustee will accept $20 million for the benefit of the estate, together with the disallowance of Perry's pending claims.

The trustee said he has agreed to seek recovery of the settlement amount from liability insurance policies and not from other sources or Perry's personal assets.

In exchange for the payment, all claims against Perry in the adversary proceeding will be dismissed.

IndyMac, a Pasadena, Calif., bank holding company, filed for bankruptcy on July 31, 2008. The Chapter 7 case number is 08-21752.

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