Judge approves Met bankruptcy plan

A federal judge confirmed Metropolitan Mortgage & Securities Co.’s bankruptcy plan Thursday. The action begins a series of events that should return money to thousands of regional investors.

Metropolitan trustee Maggie Lyons anticipates mailing an initial repayment to creditors in April. Holders of Metropolitan notes should expect between 5 cents and 8 cents on the dollar.

By June, noteholders of Summit Securities Inc. should expect an initial repayment of 5 cents on the dollar.

Later this year, Metropolitan noteholders could receive another 6 cents to 9 cents on the dollar. A similar repayment for Summit noteholders may take longer.

Creditors could collect much more if several scenarios play out in favor of creditors. Among them: successful lawsuits and arbitration against auditing giants PricewaterhouseCoopers LLP and Ernst & Young LLC; successful recoveries of alleged ill-gotten gains from former owner C. Paul Sandifur Jr. and his family; and proceeds from the sale of insurance affiliate Western United Life Assurance Co.