TelexFree Trustee puts up ~40% recovery plan for vote
Just over a week ago the TelexFree Trustee announced he was working on a Plan of Liquidation for filing.
On May 6th the plan was filed, revealing what TelexFree victims can expect recovery wise.
As at the time of the filing, the TelexFree Trustee is sitting on around $176 million.
Here’s the split of that balance that will go towards recovery distribution:
- $156,471,294 from the DOJ, sans up to $7.5 million in fees (~$148 million)
- $2.5 million in SEC settlements, sans a 10% fee ($2.25 million)
- $18 million in available cash, sans payment of other claims and fees (amount unknown)
Based off these amounts the Receiver estimates that, under the proposed liquidation plan, TelexFree victims with claims less than $4250 can expect to recover a flat 43%.
Victims with claims approved claims greater than $4250 can expect to initially recover 39%.
Through additional distribution payments, this figure is expected to climb by 2% to 10% (41% to 49% total recovery).
Regarding the IRS tax settlement, the liquidation plan disclosure statement reveals the IRS settled with the Trustee for $7,741,220.
This settlement was reached following a court loss last month, and is down from the $429 million the IRS initially claimed.
With respect to the proposed liquidation plan;
The Chapter 11 Trustee believes that the Plan provides the quickest and largest recovery to creditors.
ACCORDINGLY, THE CHAPTER 11 TRUSTEE URGES ALL CREDITORS TO VOTE IN FAVOR OF THE PLAN.
I’m neither a lawyer nor an accountant, but the plan seems pretty fair to me.
Pending approval from the court, the liquidation plan will be put to the vote.
TelexFree victims with allowed claims will be eligible to vote. Note that if you sold your claim to a third-party you are not permitted to vote.
If the liquidation plan survives a vote, an “effective date” will be set and distribution payments scheduled.
If the plan is voted down;
there will be a substantial delay in you receiving a distribution and it is likely that you will receive less than the amounts proposed in the Plan.
Pending approval by the court and the result of the claimant vote, stay tuned…
Thanks for the update Oz. Does this mean that they will contact the victims by email later on?
And untill You fill out the online ballot. You will not receive a payment.
@Gon
Should do. If you’ve been in contact with the Receiver communication should continue through the same email address.
Can’t find where to fill out an online ballot. Could you forward a link please if you have this info? Thanks.
The ballot is part of the claims process isn’t it? If you have a valid claim you should have been provided info (???)
Sorry, but theres no info on any ballot in the emails i have received.
These are the options that the platform offers:
@Gon
That’s the class-action, has nothing to do with the Trustee. I take it you don’t have an approved claim.
The voting ballots have not been sent out yet.
Well thats why i was worried because i am listed in the telexfree online filing server (bmcgroup) as a “timely filed participant claim”. So i dont know what to think
only after the court hearing, if the resolution presented by the trustee is approved by the judge, they will send out the ballots.. the hearing on the 25/26/27 of May via telefone.
I received an email today, a AMENDED NOTICE OF HEARING REGARDING APPROVAL OF DISCLOSURE STATEMENT. An audiconference will be held on May 27th.
Yah, docket shows a telephonic hearing scheduled for the 27th.
Rescheduled to 06/02/2020.
Sorry, on 06/02/20 I think it is another thing.
If you have allowed claims, check your email!
Ballots were sent!!
In the payment options, what does, “prepaid mastercard mean”?
Will i be recieving via mail a prepaid mastercard with the balance of my distribution?
I think that they will give you a prepaid virtual card, which you can use to shop online or to transfer the amount to your bank account.
I think either that or Paypal are the best options, although you have a fee of 12USD for choosing PP.
Hello, I have allowed claims to receive, but my email inbox was deleted when I had to receive it. How can i receive the ballot again?
Ballots are controlled by the Trustee so you’ll need to contact him.
I see people that are under the impression that they have “allowed claims to receive”. From the published documents and from this site: registry.telexfreeclaims.com
The most promising status i see is “Conditionaly allowed”. Haven’t seen “allowed claims”.
Conditionally allowed are the disputed ones ordered on by the court aren’t they? Plenty of allowed claims AFAIK.
I have done some analysis taking registry.telexfreeclaims.com as a source. Then I compared my findings with the numbers in this document:
vote.telexfreeclaims.com/DisclosureStatementFiled_en.pdf
I am not sure how up to date the data on the site is, but from my calculated totals it quite rightly matches the numbers in the DisclosureStatementFiled file.
From what I can see from the site there are 4 statuses to look for (only taking the favorable claims into account) :
– Conditionally Allowed as Filed
– Conditionally Allowed at Reduced Amount
– Review In Progress
– Approved
Then this can be filtered more down to:
1) Claims as Filed and Claims at Reduced Amount that are Review In Progress
2) Claims as Filed and Claims at Reduced Amount that are Approved
The DisclosureStatementFiled file states that there are:
78,759 Participant with claims of $4,250 or less for a total of $125,000,000.
In the data on the site I calculated the following:
78,477 Participant with claims of $4,250 or less for a total of $125,331,844.
The other category claims the DisclosureStatementFiled file states are:
22,327 Participant with claims Participant Claims other than Class 2 (or claims for more than $4,250) for a total of $230,000,000.
In the data on the site I calculated the following:
22,097 Participant with claims of more than $4,250 for a total of $225,486,565.
From what I get from the data on the site:
Approved claims of $4,250 or less: 608 => $25,835
Approved claims of more than $4,250: 1 => $28,599
Review In Progress claims $4,250 or less: 77,869 => $125,306,009
Review In Progress claims more than $4,250: 22,096 => $225,457,965
From this I think we can conclude that the data on the site matches the estimates in the DisclosureStatementFiled file.
The only thing I wonder is what the difference is between Approved and Review in Progress.
If they still have to review 99,965 claims (total value $350,763,974) and they only have completed 609 (total value $54,434), then I think it will still take some time.
Just for completeness, the site mentions 132,107 Claims. According to the data I found:
Approved claims (608 + 1) : 609 =>
Review In Progress (77,869 + 22,096): 99,965 =>
Disputed : 566 => $26,856
Disallowed : 30,967 => -$190,695,205
Total :132,107
When you land at kcc/telexfree website, Mr. Darr is speaking to all of those who have conditionally allowed claims as entitled to receive the distribution of funds.
Wouldn’t make any sense to have a list of people so big and send them ballots, if they are not entitled to distribution.
The point I was trying to make is that basically all claims are conditionally allowed. I don’t think approved claims exist. Y
es, for a few people claiming $50, what means they would get $20 back.
There seem to be a lot of people under the impression that they are about to receive 40% back. I think it will still take a couple of years. If it will happen.
APBC, not sure what makes sense, but sending out thousands of emails doesn’t cost any money. Don’t know what you mean by it.
I understand your point but if you read carefully the plan summary, on top of the document there is this statement:
I had received email from my family claim but still missing my email with username and password so I can vote.
I sent a request but only received and automatic response with some FAQ. What can I do if I have a valid allowed claim?
Kudos to those that weren’t tempted to accept any of those third party companies that were offering to purchase your claim from 10% up to 22%!
Turns out, initial distribution is 39%! Good things come to those who wait!
Though we were all losers in this, 39% is still way better than the 10% or 22% that those third party companies were offering.
Now hopefully there will be future clawbacks for the direct upline that benefitted from this scam in the near future so those that were victimized at the bottom of the pyramid may receive as much as 49% total.
Another 10% more or less still helps.
Either you have access to the portal to vote or you don’t.
Somehow you filed a claim so someone on your side has login credentials.
@victor
From what I understand you got some email before, informing you about the status of your claim. Now you are waiting for an email with username and password.
You should have received this if your claim is “valid”. I put it between quotes because to me it’s still a very dark grey area what means valid (as mentioned in previous postings).
Post your email you previously got here and someone might be able to help. Of course leave out your personal details.
Try to reach the email contacts or the trustee, they will reply.
The next hearing will be held on the 8th of July, I believe in this hearing the judge will allow or disallow the distribution plan.
By the court documents available on KCC Telexfree website lots of people are complaining that they haven’t received the ballots or that their claims were disallowed. Hope all of you can get back at least part of your money. Two weeks for the d day.
what makes you think jul 8 is d day?
Because it’s the hearing for the confirmation of the plan distribution.
I Radica Mohomed did not received a ballot form to fill out for my payment.
that doesn’t mean distribution will happen that day.
first off, theres a 5 business day waiting period after confirmation for objections. and then theoretically the trustee could, could, distribute, that does not mean he will…. he will when hes good and ready, and they have not said they’re good and ready.
Do you have a valid accepted claim?
for those with approved claim that did not receive ballots, check your junk mails. if you are using Gmail it will be in the “promotions Tab”.
It seems there is some problem with the ballots, because i did receive mine on gmail, but my wife who as yahoo mail and an approved claim did not receive her credentials to vote.
she wrote to claim response, did not get in answers yet and voting deadline is approaching.
As Einstein used to say, two things are infinite: the universe and human stupidity.
I was checking a court document and a claimant made an objection to the liquidation plan because they are offering him only 7000USD of almost 19000USD, however those 7000 correspond to the 40% that were meant to be distributed initially according to the plan that I suppose that he hasn’t read it at all.
those with approved claim that did not receive ballots credentials, send a email with your claim number on: QUESTIONS@TELEXFREECLAIMS.COM
They will answer immediately with your credentials.
I want to participate and vote.
Voting wrapped up June 30th. You’d know that if you had a valid claim so I’m assuming you don’t.