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As noted in our press release on 3rd September the JLs have a goal to distribute the first dividend by the end of the year.
The settlement agreement is a six-party agreement that deals with assets and related litigation in five different jurisdictions. As a result, the drafting of the agreement was a lengthy process, requiring consultation with attorneys and authorities in numerous jurisdictions. Once the agreement was drafted, all parties to the agreement carefully evaluated the agreement, considering all possible implications of finally approving its terms. Because of the importance of the issues covered by the settlement agreement, the final deliberative phase of the process was necessarily lengthy. The length of time needed to complete the settlement agreement is ultimately a reflection of the degree of care all parties exercised in preparing and finalizing the agreement.
The settlement agreement allocates $18 million to the Antiguan liquidation estate primarily to fund litigation that the parties believe will have a substantially positive return for the Antiguan liquidation estate. An additional $18 million may also be allocated for working capital, including litigation funding, if necessary. This working capital cannot be used to fund any litigation adverse to any other party to the definitive agreement. Further, every effort will be made to minimize the amount actually used for working capital, and any funds not actually used for working capital will be released for distribution to creditor-victims.
The $20 million, which came from Stanford assets in the U.K., was advanced to the Antiguan liquidation estate during the pendency of the dispute over control of those assets. The funds have been spent to cover expenses of the Antiguan liquidation estate, which was the purpose for which they were advanced by the Central Criminal Court. Because the Settlement Agreement places control of the U.K. assets with the Antiguan Joint Liquidators, the Settlement Agreement extinguishes the obligation to repay the loan.
The international assets covered by the settlement agreement will be released only to creditor-victims of the Stanford fraud scheme. No other claimant will receive a distribution from the pool of international assets. Therefore, claimants such as the United States Internal Revenue Service and the Government of Antigua and Barbuda will be excluded from the distribution of the international Stanford assets.
If you have already submitted a proof of debt you are not required to do anything further at this time. The Antiguan liquidation is currently working to complete its review of all submitted claims in the next 4 to 6 weeks and will continue to notify creditors as it completes its review. It will notify anyone that its records show has not submitted a proof of debt prior to any distribution. If you have not yet submitted a proof of debt, the Antiguan Joint Liquidators encourage you to complete and submit one immediately to avoid any delay in receipt of any distribution. A copy of the proof of debt can be found in the claims section of the Antiguan Liquidation website.
The Receiver and the Joint Liquidators are each charged by their appointing courts with making a distribution of assets from their respective estates. The laws applicable to their respective distributions are similar but not identical. Therefore, it is impractical to have a single, joint distribution. However, the Joint Liquidators and the Receiver have agreed to coordinate their efforts to the maximum extent possible to minimize duplication.
The agreement will resolve all current disputes between and among the Receiver, the Joint Liquidators, and the Department of Justice concerning the international Stanford assets. It is anticipated that further court proceedings may be required before all international assets are released for distribution. However, the Receiver, the Joint Liquidators, and the Department of Justice have agreed to work in concert in any such proceedings to ensure that assets are released for distribution as quickly and expeditiously as possible.
In general, the Receiver, the Official Stanford Investors Committee, and the Joint Liquidators will continue to handle litigation in the jurisdictions where they have already been recognized. The Receiver, the Official Stanford Investors Committee, and the Joint Liquidators will share information and coordinate their efforts when possible in an effort to maximize recoveries for victims of the Stanford fraud.