Chinese investors Anc Bio Vermont sue citibank settlement
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A group of Chinese investors in a proposed biomedical center in northern Vermont are objecting to a $13.3 million settlement with a bank used by one of the developers because some of the funds won’t be returned to them, but go instead to running Jay Peak resort.
“They object not so much to the settlement itself, but to the distribution of the proceeds,” said Linda Worton Jackson, a Florida attorney representing clients called in the document, “The Group 7 Ad Hoc Committee.”
The settlement, if approved by a federal court judge in Miami, would allow Citibank to pay $13.3 million to the court-appointed receiver, which would be used to operate the Jay Peak Resort properties.
Jackson wrote that the Jay Peak properties “are not owned by Phase VII Investors, and there is no guaranty that the distribution scheme eventually decided upon by the Receiver will provide any distribution to Phase VII Investors resulting from the sale of those properties.”
Michael Goldberg, the court-appointed receiver, could not be reached Tuesday for comment.