Following a series of events that led California-based introducing broker (IB) Avail Trading Corp to seek bankruptcy protection following a court decision that found in favor of one of its former clients in connection with trading losses incurred in a managed account program, the case has since come to a close.
The matter has apparently been resolved thanks to a settlement that reached between the broker and its former client George Bos. It was signed by all parties, according to sources.
The terms or amount of the settlement were not disclosed.
This development closely preceded a bankruptcy dismissal for one of Avail Trading Corp’s principals – David Manoukian – which was approved in a California court.
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Mr. Manoukian had filed the personal bankruptcy protection in order to safeguard his personal assets, including his home. That order was dismissed following the settlement, while the bankruptcy dismissal for the company was just finalized yesterday.
The company’s bankruptcy dismissal was filed on April 13th 2016 in the United States Bankruptcy Court in the central district of California, Los Angeles division. They show the order granting debtor a motion to dismiss the chapter 11 case.
While the case may have appeared to be simple on the surface, with regard to blame and responsibility, it was actually far more complex, due to the fact that the investor’s account was managed by a third party. That third party was a cross-claimant at one point, but due to an inability to ascertain their identity the case direction shifted.
Nonetheless, responsibility needed to taken by someone and it appears that the settlement and bankruptcy dismissal shows that an amicable resolution was achieved.
A company spokesperson told Finance Magnates: “We are pleased that a settlement has been reached. Our focus will resume on the growth of the US company by integrating new technology and establishing an alliance with a reputable Forex Dealer Member that will remain dependable for years to come.”