On July 9th the Bankruptcy Court approved a $10,000,000 interim distribution to allowed claimants of TSI Holdings, LLC, WSC Holdings, LLC and SouthPark Partners, LLC. The Trustee’s counsel is circulating a proposed Court Order for input by other attorneys in attendance at the hearing. Once a proposed Order has been agreed to by the parties in interest, the proposed Order will be forwarded to the Court for consideration. Once the written Order is entered by the Court, we will post it here. After the Order is entered, the escrowed funds will be wire transferred to the Trustee’s Trust account for use in the actual distribution. Distribution checks can only be processed once the Trustee has the funds on hand. Once the checks are processed, the Trustee will send the distribution checks to allowed claimants as allowed by the Order via U.S. Mail.
On June 27, 2018, the Trustee filed a motion with the Bankruptcy Court seeking approval of a $10,000,000 interim distribution to holders of allowed claims in the TSI Holdings, LLC, WSC Holdings, LLC, and SouthPark Partners, LLC bankruptcy cases (linked below).
Diane Siskey has agreed to release $10,000,000 from escrowed life insurance proceeds to enable the Trustee to make an immediate interim distribution to allowed claimants in the Ponzi Scheme. The Trustee hopes to file an amended interim distribution motion later today.
On Monday June 25, 2018 the Court considered the Trustee’s Motion for Approval of Interim Distribution (the “Distribution Motion”), and the Trustee’s Motion for Order (I) Terminating Joint Administration of Sharon Road Properties, LLC Case (II) Converting the Remaining Cases to Chapter 11 and (III) Providing Miscellaneous Relief (the “Motion to Convert”). The Court denied the Motion to Convert indicating that it would not approve the releases proposed in the draft Plan. Because the Distribution Motion was conditioned upon the allowance of the Motion to Convert, it was also denied. The Trustee is continuing to work with all parties involved to work towards a workable global solution for creditors of TSI Holdings, LLC, WSC Holdings, LLC and SouthPark Partners, LLC (the “Ponzi Debtors”).
The Court did state that it would separate the Sharon Road Properties, LLC bankruptcy case from the Ponzi Creditor cases for bankruptcy administration purposes.
The Trustee’s Motion for Order Estimating Claims for Stone Street Partners, LLC, Paul Porter and Dawn King were not heard as it became moot when the Court denied the Distribution Motion.
The Trustee received documents from Stone Street Partners, LLC on June 21 and 22nd, 2018 and therefore did not proceed with the Motion to Compel Stone Street Partners to respond to Discovery Requests.
The Court continued the hearing on the Trustee’s Application to Approve Interim Compensation to Grier, Furr & Crisp, PA until July 19, 2018 at 2:00 pm.