A July 23rd court order has approved a proposed plan of distribution filed by the Traffic Monsoon Receiver.

Unfortunately there is still no timeline for distribution payments to Traffic Monsoon victims with allowed claims.In summary, the July 23rd approval order:

  • overruled all objections to the proposed plan of distribution (there was some concern these objections, although fruitless, might stall proceedings);
  • denied the Receiver permission to make an initial distribution payment;
  • denied the Receiver’s request to bar holders of allowed claims who do not adhere to deadlines set by the court (with respect to the distribution process); and
  • affirmed that, with respect to making distribution payments, the Receiver will use the pro rata methodology

The court has left it up to the Receiver to set an initial distribution date. This ties into a Notice of Approval, to be sent out to Traffic Monsoon victims holding a valid claim.

The notice explicitly notes;

The Receiver is NOT authorized at this time to make any distributions to you without further order from the Court.

Also, while the Receiver estimates a 77.8% distribution will be made to holders of allowed claims, the Receiver, at this time, does not definitively know the percentage of distribution that will be made nor the date the distributions will be made.

The Receiver is authorized to seek a private letter ruling regarding any potential tax consequences and applicable withholdings. The private letter ruling shall be sought as expeditiously as possible.

The notice points victims with a valid claim to a Distribution Portal, on which they are or may be required to provide “certain required information”.

The Receiver shall collect from all holders of Allowed Claims: (i) the Releases, (ii) IRS Forms W-9 or W-8 (as applicable), (iii) OFAC Certificates, and (iv) Wire Information or mailing address.

A deadline for this is to be set by the Receiver and filled in on the actual Notice of Approvals sent to Traffic Monsoon victims.

I take it either close to or after that date the Receiver will approach the court for a date of initial distribution.

Note that given the court’s stance on non-compliance…

The court declines to prejudge whether a claim should be effectively denied based on imperfect compliance.

…there may be delays based on how long it takes to sort any “required information” non-compliance out.

 

Footnote: Reminder that BehindMLM is not tech support for Receiverships. Any questions about individual claims should be directed to the Receivership.