TelexFree victims to initially recover 40%, IRS claims resolved
Just under two weeks ago BehindMLM called out the TelexFree Trustee for failing to communicate with victims.
Today the Trustee has finally provided an update on parallel IRS proceedings and distribution payments.
In our April 19th article we cited the IRS’ $429 million dollar claim as a major risk to TelexFree victim claim distributions.
In light of that, the Trustee advises that he has
reached an agreement with the Internal Revenue Service to resolve the disputed matters.
Details of the agreement have not been made public. Given the Trustee goes on to talk about distribution payments however, we imagine the IRS isn’t going to claim anywhere near the original $429 million amount.
With respect to distribution payments, the Trustee writes;
My counsel and I are in the process of preparing a Plan of Liquidation for filing with the Bankruptcy Court which, if confirmed by the Bankruptcy Court, will allow me to distribute the available funds to TelexFree participants who have allowed claims in the Bankruptcy Cases.
I estimate that the initial distribution to TelexFree participants will be approximately 40% of their allowed claims.
There may be additional distributions in amounts to be determined as funds become available.
At some point in the future TelexFree victims with a valid claim will be given further information,
including a ballot for you to vote on the Plan, that you will need to complete and return in order to vote on the Plan and to receive your distribution.
We don’t have a timeline on that, but here’s hoping it doesn’t take another four years.