Approval to sell Zeek Rewards net-winner judgments sought
Rather than waste time chasing down Zeek Rewards scammers to collect judgment, the Receiver has opted to sell net-winner judgments to a third-party.
Big Sky Research Bureau is a debt buying company that, according to their website, has been in business since 1990.
As per a purchase agreement submitted for approval on July 4th, Big Sky Research will purchase 6638 net-winner judgments for $10 million.
This represents 5.6% of the $178.5 million in outstanding net-winner judgments.
It should be noted that while this figure sounds low, the Zeek Receiver states Big Sky Research’s offer ‘exceeded all other offers’.
The exact cost and time it would take the Receiver to alternatively enforce 6638 net-winner judgments is unclear.
The Receiver believes selling the Judgments to the Buyer consistent with the terms of the Purchase Agreement is in the best interest of the RVG Estate.
Subject to adjustment, the Purchase Agreement will result in approximately $10 million for the RVG Estate, which is the highest and best offer the Receiver has received to date.
Selling the Judgments will greatly reduce the costs and expenses
associated with attempting to collect, over a long period of time, over six thousand judgments.
Additionally, the Purchase Agreement will result in millions of dollars available to the RVG Estate potentially within days or weeks of the Effective Date of the Purchase Agreement, permitting the wind down of the Receivership to occur in
the near term.
On the other hand, it may be years before the RVG Estate collects
anything on the Judgments, if at all, if the Judgments are not sold.
This would, therefore, leave the Receivership open and subject to continued administrative costs and expenses.
Should a better offer be received prior to final approval of the sale, the Receiver retains the right to terminate the Big Sky Research purchase agreement.
Pending a final distribution payment, Zeek Rewards victims are expected to have recovered upwards of 80% of their losses.