Bankrupt Fintech Linqto Gets Settlement With Creditors Approved

Collapsed startup Linqto Texas LLC won approval of a deal to fund its bankruptcy case and settle with customers who were deceived about the fintech’s investments in private companies.

Linqto smoothed a path through Chapter 11 with a settlement that provides case funding and promises returns for customers through a closed-end fund that can be sold like public stock or a trust that would allow cash-outs at certain times. Judge Alfredo Perez of the US Bankruptcy Court for the Southern District of Texas approved the deal at a hearing Oct. 3.

Under the arrangement, Linqto will be able to tap up ...