Tom Petters' 2002 investment in Fingerhut Direct Marketing is finally paying off.
On Friday, the trustee of the Petters corporate bankruptcy estate said he received nearly $85 million in deferred dividends from the parent of Fingerhut, Eden Prairie-based Bluestem Brands.
The payment is the single largest cash recovery in the five-year bankruptcy proceeding.
Bankruptcy trustee Doug Kelley called the payment "a significant step" in efforts to recover assets for creditors and investors affected by Petters' corporate collapse in 2008 when a $3.65 billion Ponzi scheme that he had engineered imploded.
"This is one of the very few investments that Tom Petters made that has come to fruition," Kelley said in an interview. "We're glad we had the opportunity to give Bluestem management time to get out of the recession and make a recovery."
Kelley said he expects Bluestem to be a "significant asset" in the Petters bankruptcy estate over time.
With Friday's cash infusion, close to $400 million has been collected in bankruptcy proceedings to date. Significant recoveries include the sale of Polaroid for $85.9 million, which included a stock and cash component, and $19 million from GE Capital in the settlement of a clawback lawsuit.
Pending clawback lawsuits seeking the return of so-called phantom profits from investors and lenders total $1.7 billion.
