Restructuring

An investment fund that parked all of its money with Bernard Madoff has agreed to give up $95 million for the benefit of Mr. Madoff’s victims in the second major settlement announced this week by the court-appointed official tracking down money tied to the biggest Ponzi scheme ever. Read Sara Randazzo’s Daily Bankruptcy Review story in The Wall Street Journal.

Mutual fund giant Franklin Templeton Investments is appealing a judge’s decision to allow the city of Stockton, Calif., to exit bankruptcy under a plan that pays Franklin-managed funds a fraction of the $37 million owed them but makes full payments for the city’s pensions. Read the Daily Bankruptcy Review story in The Wall Street Journal.

A Manhattan bankruptcy judge will consider a settlement Tuesday that raises millions of dollars for Bernard Madoff‘s cheated investors.

Under the deal, real-estate developer Edward Blumenfeld, as well as his family and company, will return $32.75 million in cash that they received from investing with Mr. Madoff before the 2008 collapse of his Ponzi scheme.

They’ll also surrender $29.35 million in claims against Mr. Madoff’s investment firm.

Much to our delight, Wednesday night’s “Jeopardy!” episode included a category seemingly custom made for Bankruptcy Beat readers. For those who missed it, “Cause of Debt” included five debt-laden questions that at times stumped the contestants (Tournament of Champions contestants, no less).

How would you have done on last night’s show? Take the quiz to find out.