Are all investors treated equally? What does pro-rata distribution mean?
All investors with legitimate claims must be treated equally and all distributions will be made pro-rata. That means that each investor of an allowed claim will receive the same percentage distribution on his or her claim. For example if the Receiver has $50,000 in proceeds from the liquidation of receivership company assets to distribute to a total of two investors and if Investor A has a claim of $100,000 and Investor B has a claim of $150,000, then the combined investor claims will total $250,000, and investors will be able to receive 20% of their claims. Investor A will receive $20,000 and Investor B will receive $30,000.
