A note on the order and amount in which Blackacre Claims are being paid:
There are two limitations upon my ability to disburse funds to Blackacre clients at this time. These are, first, the requirement to maintain funds in reserve against the current and future obligations of Blackacre and the cost of the Receivership; and second, the requirement that I ascertain to a reasonable degree of certainty that the funds in question belong to the customer seeking payment, before such payment is made:
As to the first limitation, customer claims for payment are being processed chronologically as customer closing dates or other deadlines approach. As many of you know, claims are currently being paid at the rate of 80% of the value of the claim to you, with 20% being withheld as a reserve from which to pay any portion of the costs of the Receivership, damages to other parties, or other expenses which may be apportionable to Blackacre’s customers. To the extent that any costs are apportioned to any given customer, said costs may be apportioned on a pro rata basis, but the exact method for the apportioning of such costs is yet to be determined and must be approved by the Court before the 20% of funds, if any, is disbursed to Blackacre’s other customers.
As the second limitation, Blackacre’s accounts can be divided into two categories: Those funds held in segregated sub-accounts denominated by Blackacre customer, and those funds co-mingled in Blackacre’s own master or operating accounts. Where funds are held in a sub-account separately denominated sub-account in a customer’s name, this segregation from Blackacre’s other funds assists in achieving a reasonable degree of certainty that the funds in that segregated account are entirely those of the customer and are not tainted by Blackacre’s problems. Where funds are maintained in one of Blackacre’s main or operating accounts in the name of Blackacre only, however, it is more difficult to ascertain the ownership of those funds with the requisite reasonable degree of certain.
Therefore, for the time being, I am disbursing only funds held in separately denominated sub-accounts assigned to particular Blackacre customers. Disbursement of funds held in co-mingled accounts in Blackacre’s name alone will commence at a later date when the true state of Blackacre’s assets and obligations is known; such payments may be deferred until a comprehensive plan for the disposition of Blackacre’s assets has been approved by the court.
The aforesaid is intended for informational purposes only in order to assisting Blackacre customers in understanding the process of adjudicating the various claims against Blackacre – it does not constitute a binding promise to proceed in this manner in each case. Each Blackacre customer, and other Blackacre obligations, will be evaluated separately and decisions made on the time and manner of payment will be made in accordance with all the facts and circumstances of the particular case.
There are two limitations upon my ability to disburse funds to Blackacre clients at this time. These are, first, the requirement to maintain funds in reserve against the current and future obligations of Blackacre and the cost of the Receivership; and second, the requirement that I ascertain to a reasonable degree of certainty that the funds in question belong to the customer seeking payment, before such payment is made:
As to the first limitation, customer claims for payment are being processed chronologically as customer closing dates or other deadlines approach. As many of you know, claims are currently being paid at the rate of 80% of the value of the claim to you, with 20% being withheld as a reserve from which to pay any portion of the costs of the Receivership, damages to other parties, or other expenses which may be apportionable to Blackacre’s customers. To the extent that any costs are apportioned to any given customer, said costs may be apportioned on a pro rata basis, but the exact method for the apportioning of such costs is yet to be determined and must be approved by the Court before the 20% of funds, if any, is disbursed to Blackacre’s other customers.
As the second limitation, Blackacre’s accounts can be divided into two categories: Those funds held in segregated sub-accounts denominated by Blackacre customer, and those funds co-mingled in Blackacre’s own master or operating accounts. Where funds are held in a sub-account separately denominated sub-account in a customer’s name, this segregation from Blackacre’s other funds assists in achieving a reasonable degree of certainty that the funds in that segregated account are entirely those of the customer and are not tainted by Blackacre’s problems. Where funds are maintained in one of Blackacre’s main or operating accounts in the name of Blackacre only, however, it is more difficult to ascertain the ownership of those funds with the requisite reasonable degree of certain.
Therefore, for the time being, I am disbursing only funds held in separately denominated sub-accounts assigned to particular Blackacre customers. Disbursement of funds held in co-mingled accounts in Blackacre’s name alone will commence at a later date when the true state of Blackacre’s assets and obligations is known; such payments may be deferred until a comprehensive plan for the disposition of Blackacre’s assets has been approved by the court.
The aforesaid is intended for informational purposes only in order to assisting Blackacre customers in understanding the process of adjudicating the various claims against Blackacre – it does not constitute a binding promise to proceed in this manner in each case. Each Blackacre customer, and other Blackacre obligations, will be evaluated separately and decisions made on the time and manner of payment will be made in accordance with all the facts and circumstances of the particular case.
