The USFIA Receiver intends to file an Amended Distribution Plan (ADP).
The ADP intends to deal with the IRS roadblock, currently holding up approved victim distribution payments.
Last month we reported on the IRS roadblock. The Receiver’s proposed ADP will set aside $16.5 million as a “tax reserve”.
$45.8 million will be paid out to victims, which is practically dead on the $45.2 million in allowed claims as of December 2020.
The Receiver claims $45.8 million will pay out 100% of the Allowed Claims.
The ADP has been put together through consultation with the SEC. Claimants however are still able to object to the ADP, prior to its planned filing on June 6th, 2022.
If you oppose this Motion, you are required to file your written opposition with the Office of the Clerk.
Further details are available in the Receiver’s April 22nd notice filing.
Pending resolution of any public objections, it’s expected USFIA distribution payments will go out sometime in Q3 2022.
Update 23rd May 2022 – At the request of the Receiver, the hearing to approve the USFA victim distribution plan has been rescheduled to July 11th, 2022.
Update 22nd June 2022 – The Receiver has secured approval to send out USFIA victim distribution payments.
Update 12th June 2022 – The USFIA Receivership and IRS have reached an agreement.
The agreement prioritizes USFIA victim claims over those of the IRS.