telexfree-logoYesterday I was contacted Huron Consulting Group, Financial Advisor to the TelexFree Trustee, requesting assistance in getting word out about the victim claims process.

In addition to covering the claim portal going live last week, here’s a copy of the official Notice of Deadline For Filing Electronic Proofs of Claim and Claims Procedures.

NOTICE OF DEADLINE FOR FILING ELECTRONIC PROOFS OF CLAIM AND CLAIMS PROCEDURES

On April 13, 2014, TelexFree, LLC, TelexFree, Inc., and TelexFree Financial, Inc. (together, the “Debtors”) filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code with the United States Bankruptcy Court for the District of Nevada.

The cases were transferred to the United States Bankruptcy Court for the District of Massachusetts (the “Court”) on May 9, 2014 and are being jointly administered under TelexFree, LLC, case no. 14-40987-MSH.

On June 6, 2014, Stephen B. Darr was appointed Chapter 11 trustee (the “Trustee”).

PLEASE TAKE NOTE that on January 26, 2016, the Court entered an order approving the Motion by Chapter 11 Trustee for Entry of Order Fixing Bar Date for Filing Proofs of Claim, Approving Form and Manner of Notice, Directing that Claims be Filed Electronically, and Approving Content of Electronic Proofs of Claim (the “Bar Date Motion”), establishing certain deadlines for submission of claims in the Debtors’ Chapter 11 cases.

On May 27, 2016, the internet portal (“Portal”) for submission of electronic proofs of claim became operational and can be located at telexfreeclaims.com. Pursuant to the order approving the Bar Date Motion, September 26, 2016 at 4:30 p.m.. (prevailing Eastern Time) has been established as the deadline for each person or entity (including individuals, partnerships, corporations, estates, trusts, joint ventures, and governmental units, wherever located), and Participants (collectively, “Claimants”) to file proofs of claim against the Debtors.

Participants means persons or entities who purchased a membership plan in, or a voice over internet package (“VoIP”) from, the
Debtors. Proofs of claim must be submitted electronically through the Portal.

The Bar Date and the procedures set forth below for filing proofs of claim apply to any claim as defined in Section 101(5) of the Bankruptcy Code (each a “Claim”), against the Debtors which Claim arose on or prior to the filing of the Chapter 11 petitions on April 13, 2014 (the “Petition Date”), except for holders of those Claims listed in Section 4 below that are specifically excluded from the Bar Date filing requirements.

1. WHO MUST FILE A PROOF OF CLAIM

If you have a Claim against the Debtors that arose on or prior to the Petition Date, and such Claim is not one of the types described in Section 4 below, you must file an electronic proof of such Claim (each a “Proof of Claim”) to share in distributions from the Debtors’ bankruptcy estates and to vote on a Chapter 11 plan that may be filed by the Trustee.

Claims based on acts or omissions of the Debtors that occurred before the Petition Date must be filed on or prior to the Bar Date, as set forth herein, even if such Claim is not now fixed, liquidated, or certain or did not mature or become fixed, liquidated or certain before the Petition Date.

Under section 101(5) of the Bankruptcy Code and as used in this Notice, the word “Claim” means:

(a) a right to payment, whether or not such right is reduced to judgment, liquidated, unliquidated, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured; or

(b) a right to an equitable remedy for breach of performance if such breach gives rise to a right to payment, whether or not such right to an equitable remedy is reduced to judgment, fixed, contingent, matured, unmatured, disputed, undisputed, secured, or unsecured.

As used in this Notice, the term “Schedules” means schedules of assets and liabilities filed by the Debtors or the Trustee, as they may have been amended, pursuant to Federal Rule of Bankruptcy Procedure 1007.

2. WHAT TO FILE

Participants must file the electronic proof of claim specifically designated for Participants (the “Participant ePOC”) through the Portal on or before the Bar Date. Detailed instructions for completing the Participant ePOC are included in the Portal.

Claimants other than Participants must file a claim using the standard electronic proof of claim (the “Standard ePOC”) through the Portal on or before the Bar Date.

Detailed instructions for completing the Standard ePOC are included in the Portal. [The Participant ePOC and Standard ePOC are referred to together as the “ePOC’s”].

All ePOC’s must be signed by the holder of such Claim or, if the holder of such Claim is not an individual, by an authorized agent of the holder of such Claim. It must be completed in English and be denominated in United States currency.

3. WHEN AND WHERE TO FILE

Except as provided for herein, all Proofs of Claim must be filed so as to be received through the Portal on or before September 26, 2016 at 4:30 p.m. (prevailing Eastern Time).

The address for the Portal is telexfreeclaims.com.

All Proofs of Claim will be deemed filed only when an ePOC is received by the Portal on or before the Bar Date.

No Proofs of Claim may be delivered by regular mail or facsimile. No Proofs of Claim should be filed with the Court.

4. WHO NEED NOT FILE A PROOF OF CLAIM

Participants: All Participants must file a Participant ePOC on or before the Bar Date. Participants need file only a single Participant ePOC, which shall constitute a claim against each of the Debtors.

Claimants other than Participants: Claimants other than Participants must file a Standard ePOC on or prior to the Bar Date unless the Claimant is one of the following:

(a) Any person or entity whose claim is listed on the Debtors’ schedules of liabilities provided that (i) the claim is not scheduled as “disputed,” “contingent” or “unliquidated”; and (ii) the holder of such claim does not disagree with the amount, nature, and priority of such claim as set forth in the schedules;

(b) Any person or entity whose claim arises from the rejection of an unexpired lease or executory contract, in which case the holder of the claim shall file a proof of claim by the later of (a) the Bar Date, and (b) thirty days after the entry of an
order authorizing the rejection of the unexpired lease or executory contract;

(c) Any person or entity whose claim is newly listed as contingent, unliquidated or disputed in any amendment to the schedule of liabilities filed after the date of the order approving this motion, in which case the holder of the claim shall file a proof of claim by the later of (a) the Bar Date, and (b) thirty days following the filing of the amended schedules.

(d) Any holder of a claim that heretofore has been allowed by order of this Court;

(e) Any person or entity whose claim has been paid in full by the Debtors or the Trustee;

(f) Any holder of a claim for which specific deadlines have previously been fixed by this Court and remain in effect;

(g) Any holder of a claim allowable under § 503(b) and § 507(a) of the Bankruptcy Code as an expense of administration, except that claims under §503(b)(9) shall be filed by the deadline established by the Massachusetts Local Bankruptcy Rules.

5. CONSEQUENCES OF FAILURE TO FILE AN EPOC BY THE BAR DATE OR FAILURE TO COMPLETE THE EPOC

THE FILING OF AN EPOC ELECTRONICALLY THROUGH THE PORTAL IS THE ONLY VALID MEANS OF SUBMITTING A PROOF OF CLAIM AGAINST THE DEBTORS.

ANY CLAIM AGAINST THE DEBTORS FOR WHICH AN EPOC IS REQUIRED, BUT IS NOT TIMELY FILED UNDER THE TERMS OF THE ORDER APPROVING THE BAR DATE MOTION, SHALL BE FOREVER BARRED AS A CLAIM AGAINST THE DEBTORS WHETHER FOR PURPOSES OF VOTING, SHARING IN ANY DISTRIBUTION, OR IN ANY OTHER WAY PARTICIPATING AS A PARTY IN INTEREST IN THIS PROCEEDING.

CLAIMS PREVIOUSLY FILED WITH KURTZMAN CARSON CONSULTANTS, LLC OR THE COURT, OR VICTIM NOTIFICATION FORMS SUBMITTED TO THE FEDERAL BUREAU OF INVESTIGATION OR MASSACHUSETTS SECRETARY OF STATE, WILL NOT BE CONSIDERED ALLOWED CLAIMS.

PARTICIPANTS AND OTHER CLAIMANTS SHOULD NOT FILE CLAIMS WITH THE BANKRUPTCY COURT OR WITH KURTZMAN CARSON CONSULTANTS, LLC. PARTICIPANTS MUST COMPLETE ALL DATA REQUESTS ON THE
PARTICIPANT EPOC, AND FAILURE TO DO SO MAY RESULT IN DISALLOWANCE OF THE CLAIM.

6. THE DEBTOR’S SCHEDULES AND ACCESS THERETO

[THIS SECTION IS NOT APPLICABLE TO PARTICIPANTS]

You may be listed as the holder of Claim against the Debtors on the Schedules. If you rely on the Schedules, it is your responsibility to determine that your Claim is accurately listed on the Schedules.

If you agree with the nature, amount, and status of your Claim in the Schedules, and if your Claim is not described as “disputed,” “contingent,” or “unliquidated,” you need not file a Standard ePOC.

Otherwise, or if you decide to file a Standard ePOC with respect to such Claim, you must do so before the Bar Date in accordance with the Order.

Copies of the Schedules are available at the Bankruptcy Court’s internet website www.mab.uscourts.gov.

A login and password to the Court’s Public Access to Electronic Court Records (“PACER”) are required to access this information and can be obtained through the PACER Service Center- www.pacer.psc.uscourts.gov.

Copies of the Schedules may also be examined between the hours of 9:00 A.M. and 4:00 P.M., Monday through Friday at the Office of the Clerk of the Bankruptcy Court, located at the Harold Donohue Federal Building and Courthouse, 595 Main Street, Worcester, MA 01608.

Respectfully Submitted,
STEPHEN B. DARR,
CHAPTER 11 TRUSTEE

Doing our bit to help out…