Wednesday, April 23, 2014

Breaking TelexFree News: TelexFree wants a 6 week delay, while DOJ wants bankruptcy trustee to take over ASAP

Here's your TelexFree update for 23-APR-2014.

TelexFree wants 6-week delay in bankruptcy

TelexFree, through KCC, has filed a motion for 6 week delay on 22-APR-2014, claiming that the SEC/FBI/ICE/local law/ who knows what else raid took all their documents and they can't fill out the rest of bankruptcy paperwork. Bankruptcy court originally gave them 2 weeks, though normally all such information should have been included. For the bankruptcy to be even considered.

According to Jordan "Ponzitracker" Maglich,
Federal Bankruptcy Rule 1007 sets forth a list of the required documents and schedules to be filed in connection with initiation of a Chapter 7, 9, 11, or 13 bankruptcy.  In addition to a bankruptcy petition, a debtor is also required to file:
  • schedules of assets and liabilities;
  • a schedule of current income and expenditures;
  • a schedule of executory contracts and unexpired leases; and 
  • a statement of financial affairs.
In addition, other required schedules include lists of creditors holding secured and unsecured claims, personal and real property holdings, and executory contracts and expired leases.
In the initial filings made by TelexFree, none of these required schedules were included.

US Department of Justice wants company placed under bankruptcy trusteeship IMMEDIATELY

US Trustees, which is the side representing the public, has filed a counter motion also on 22-APR-2014, that seeks to have TelexFree immediately transferred to the control of a bankruptcy trustee (much like Bernie Madoff's trustee Irving H. Picard, but not completely the same).

Normally bankruptcy can be handled by the people declaring the bankruptcy. US Trustees has plead with the judge to appoint a bankruptcy trustee due to evidence of fraud already documented by Mass Securities Division and the SEC, and the newly hired officers such as acting CEO and CRA cannot be trusted as they have been hired by those who are suspected of fraud.

You can read the document here:

Please note both are merely INTENT, and has NOT BEEN APPROVE BY THE COURT!
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