Highland Capital Settlement With UBS Over $1 Billion Claim OK’d

Bankrupt investment firm Highland Capital Management LP won court approval of a settlement with two divisions of UBS Group AG, resolving the Swiss bank’s $1 billion claim from a lawsuit.

Friday’s ruling will allow payouts to creditors under the court-approved reorganization plan “much sooner rather than later with such a large uncertain claim being resolved,” said Judge Stacey G. C. Jernigan of the U.S. Bankruptcy Court for the Northern District of Texas at a virtual hearing.

The agreement gives UBS an allowed unsecured claim of $65 million, plus a $60 million claim subordinated to general unsecured claims.

Under the settlement, ...