Liquidating chapter 11 bankruptcy
We find that auditors are less likely to issue a modification for clients receiving DIP financing, consistent with auditors treating its receipt as a mitigating factor in the going concern decision.On August 7, 2017, the United States Court of Appeals for the Seventh Circuit affirmed rulings by the United States District Court and the United States Bankruptcy Court in favor of Ira Bodenstein, chapter 7 trustee of the Peregrine Financial Group, Inc.
Therefore, the plaintiffs argued, their claims were entitled to the same priority afforded to futures customers. In class action lawsuit was filed more than two years after the claims bar date, the Bankruptcy Court dismissed the lawsuit as untimely.The Motion is scheduled for hearing on March 8, 2017 at a.m. 742, United States Courthouse, 219 South Dearborn Street, Chicago, Illinois, before the Honorable Carol A.Doyle, Bankruptcy Judge, or such other Judge who may be sitting in her place and stead.Such hearing may be continued from time to time without further notice other than by announcement in open Court. In their Complaint, Plaintiffs assert four claims: Count I alleges that PFG breached fiduciary duties to the Class Members by misrepresenting the manner in futures deposits would be accepted and handled and failing to disclose the embezzlement of customer funds by PFG’s CEO, Russell Wasendorf, Sr.A copy of the Motion and the proposed order is available here. Count II alleges that PFG’s failure to disclose Wasendorf’s theft of customer funds to Class Members was common law fraud, and Count III asserts that PFG was unjustly enriched by accepting Class Member funds for futures trading while failing to disclose Wasendorf’s misconduct.MF Global, formerly known as Man Financial, was a major global financial derivatives broker, or commodities brokerage firm that went bankrupt in 2011.
MF Global provided exchange-traded derivatives, such as futures and options as well as over-the-counter products such as contracts for difference (CFDs), foreign exchange and spread betting.
As of the Record Date, the claims register shall be closed for the purposes of the Proposed Distribution and the Trustee shall have no obligation to recognize any transfer of any claims occurring after the Record Date.
The Proposed Distribution checks will be mailed to the customer at the address contained in the proof of claim as of the Record Date.
An initial status hearing on the Complaint is scheduled for Wednesday, March 8, 2017 at a.m. Doyle, Bankruptcy Judge, or such other judge who may be sitting in her place and stead. Bodenstein (14 CV 5024), a group of former Forex and Metals customers sought the return of funds held by PFG at the time of its bankruptcy on the grounds that Forex and Metals contracts were “commodity contracts” within the meaning of the Bankruptcy Code. Bank will be making a payment of $44.5 million dollars to resolve all claims.
This hearing may be continued from time to time without further notice other than an announcement in open Court. Bankruptcy Court Forex Judgments Upheld On Appeal On August 15, 2016, United States District Judge John J. entered an order affirming two prior rulings by the Bankruptcy Court related to the treatment of claims by customers who held accounts with PFG for retail foreign exchange (“Forex”) and over-the-counter spot metals (“Metals”) trading. Therefore, the plaintiffs argued, their claims were entitled to the same priority afforded to futures customers. Of that amount, the court approved legal fees for the class lawyers in the amount of $13,795,000 and expenses of $437,440.
 Capitalized terms not defined herein shall have the meanings ascribed to them in the Motion. In Count IV, Plaintiffs claim that the Trustee’s “refusal” to return funds deposited by Class Members for futures trading constitutes conversion.