New Zeek Rewards Receiver provides final distribution roadmap
Following Kenneth Bell’s appointment as a District Judge, Matthew Orso has taken over the Zeek Rewards Receivership.
In a May 22nd announcement, Orso has provided a roadmap towards final distribution payments.
In his announcement, Orso cites “two main areas of litigation” that need to be resolved before final distribution payments are made.
First, we must resolve the disputes with net winners who have challenged the dollar value of the judgments against them.
This will involve filing a motion for summary judgment, and potentially litigating some claims in hearings before the Special Master appointed in this matter.
Second, we must complete the litigation against a foreign bank and other related financial companies, which involves over $13 million in Receivership property that we are attempting to recover.
Orso writes once the above litigation is completed, he
will file with the Court a Final Liquidation and Distribution Plan (“Final Distribution Plan”). Like the previous Receiver, I have considered the possibility of making another partial, interim distribution to claimants prior to the resolution of the litigation, and I have reached the same conclusion that the substantial costs of making such a distribution would reduce the amount ultimately paid out to claimants.
The Court has ordered that the Final Distribution Plan be filed by January 20, 2020.
Note that the Jan 2020 date isn’t a hard deadline, as the plan depends on finalization of the aforementioned litigation.