THE TRUSTEE REACHES A SETTLEMENT WITH LANE WILLIAMSON AS ADMINISTRATOR OF RICHARD SISKEY’S ESTATE, SISKEY INDUSTRIES, LLC, DIANE M. SISKEY, JENNA M. NEGRELLI, STONE STREET PARTNERS, LLC, DAWN E. KING, PAUL G. PORTER, METROPOLITAN LIFE INSURANCE COMPANY, MSI FINANCIAL SERVICES, INC., MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY, AND BRIGHTHOUSE LIFE INSURANCE COMPANY.

A copy of the Motion for (I) Authority to Enter into Settlement and (II) Bar Order with Settlement and Release Agreement and Notice of Hearing filed in the TSI Holdings, WSC Holdings and SouthPark Partners cases (“Ponzi Debtors”), and Motion to Approve Settlement and Notice of Hearing filed in the Sharon Road Properties case, are attached below.  The Trustee has asked the Court to approve a briefing schedule and will post a copy of that schedule when approved.

The court will hold a status conference on December 17, 2017 at 9:30 am in Bankruptcy Courtroom 1-4 of the Charles Jonas Building, 401 W. Trade Street, Charlotte, NC  28207 where the Trustee will outline the terms of the settlement.  The Court will not rule on the settlement at the status conference.

The court will hold a hearing to consider the Motion for (I) Authority to Enter into Settlement and (II) Bar Order on January 8, 2019 at 9:30 am in Bankruptcy Courtroom 1-4 of the Charles Jonas Building, 401 W. Trade Street, Charlotte, NC  28207 where the Trustee, with the support of the other parties to the Settlement and Release Agreement, will seek court approval of the settlement.

All of the terms and conditions of the settlement are in the attached Settlement and Release Agreement.   The essential economic terms of the settlement, based on the previous allowance of claims against the Ponzi Debtors by the Bankruptcy Court and the Trustee’s understanding of investor claims allowed by the Administrator of the probate estate of Rick Siskey, are as follows:

  • Diane Siskey and Jenna Negrelli pay the total sum of approximately $41,376,196.46 (approximate because the insurance funds deposited by Diane Siskey continue to draw interest).
  • MetLife pays $1,000,000.00.
  • All creditors of the Ponzi Debtors have previously received a 27.58% interim distribution.
  • Upon approval of the settlement, all creditors of the Ponzi Debtors will receive an immediate interim distribution of an additional approximately 40.64%.
  • Any creditors of the Ponzi Debtors willing to release their individual claims against Diane Siskey and her children will receive an additional approximately 18.07% payment from Diane Siskey.
  • Any creditors of the Ponzi Debtors willing to release their individual claims against MetLife will receive an additional approximately 3.63% payment from MetLife and Diane Siskey.
  • Therefore creditors of the Ponzi Debtors who sign releases of Diane Siskey, her children and MetLife will receive approximately 90% (including amounts previously received in the interim distribution) of their base claims shortly after the settlement is implemented. Additional distributions will be made upon various events occurring as fully set forth in the Settlement and Release Agreement, including possible distributions from the probate estate of Rick Siskey.
  • The Stone Street claimants will receive an immediate $1,000,000.00 payment. In addition, the Administrator of the Rick Siskey probate estate will cause Siskey Industries to transfer to Stone Street certain assets held by Siskey Industries.  In exchange for these transfers, the Stone Street claimants consent to investors in the Ponzi Debtors receiving a 100% distribution on base claims before any additional distributions are made to Stone Street from bankruptcy estate or probate estate property; thereafter Stone Street will share in any additional distributions up to a maximum total cash payment of $4,000,000.00 (inclusive of the immediate $1,000,000 upfront payment but exclusive of the assets transferred by Siskey Industries).
  • Stone Street, Dawn King and Paul Porter will agree to the disallowance of their claims as to Sharon Road Properties which will allow the Trustee to file final SRP fee applications, issue a final SRP report and ask the Court to authorize distributions to SRP claimants.
  • Investors with claims against the Rick Siskey probate estate and the “orphaned investors” as defined in the Settlement and Release Agreement will receive equivalent treatment.

Siskey- Motion to Approve Settlement

Siskey Motion to Approve Settlement Sharon Road

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