Late today, PFGBest Trustee Ira Bodenstein filed a motion to requesting the authority to make interim distributions to commodity customers. The motion and proposed order (posted below) are scheduled to be heard before Judge Doyle on Septebmer 12, 2012 at 10 AM Central Standard Time.
The distribution will consist of $123M to customers, totaling 30% of 4d and delivery class customer account balances and 40% of 30.7 class customer account balances. Details include:
- Accounts with balances of $1K to $50K which traded in the 90 days leading up to PFGBest's bankruptcy filing, referred to as "First Wave Accounts", are to receive this interim distribution on or before 9/28 if the Trustee is able. Transfer may be made via a bulk transfer to a new FCM or by check or wire transfer to individual customers.
- Accounts with balances in excess of $50K or with more than $25K which did not trade within 90 days of the bankruptcy filing date, referred to as "Second Wave Accounts", will receive interim distributions on a rolling basis. Trustee must make a "validity assessment" by 10/15 of account balances and then make transfers. Customers will be able to challenge validity assessment.
- Accounts with less than $1K will not receive an interim distribution if this distribution is made by check or wire (ie not in a bulk transfer).
- Trustee retains right to correct allocations in future true-ups or claw backs if necessary.
- Trustee will solicit RFP's from prospective receiving FCMs interested in taking part in the bulk transfer. FCMs will be allowed to enter a cash bid for PFGBest accounts, presumably with the proceeds going to the PFGBest pool of estate assets.
Trustee's Motion for Distribution
Trustee's Proposed Order for a Distribution