When will the Trustee begin distributing property in respect of customer net equity claims?
Until the LBI customer property pool has been determined and the Trustee has determined the extent of allowed claims and contingent customer claims for which he may need reserves, no distribution is likely to be made. Typically, a SIPC Trustee would make partial distributions. Each partial distribution would be made pro rata in respect of allowed customer net equity claims after approval by the U.S. Court in which the SIPC proceeding is pending. Final distributions typically require a formal release from the customer of claims against the LBI Trustee.
Related Questions
- Can the net equity proceeds from the relinquished property closing be held in an escrow account other than with the Qualified Intermediary?
- How will dividends and interest on customer property securities held by LBI be distributed by the SIPC Trustee?
- How much customer property will be available to satisfy customer net equity claims against LBI?
