1 00:00:00,000 --> 00:00:02,760 Good afternoon everyone please be seated. 2 00:00:02,760 --> 00:00:10,960 This is Judge Sticklter on the record in Prime Court Technologies case number 2311161. 3 00:00:10,960 --> 00:00:12,960 Good afternoon. 4 00:00:12,960 --> 00:00:14,960 Good afternoon. 5 00:00:14,960 --> 00:00:37,720 Good afternoon. 6 00:00:37,720 --> 00:00:38,720 I would just hand in a copy. 7 00:00:38,720 --> 00:00:58,020 So turning to the agenda, I'd like to thank Your Honor for entering orders prior to today 8 00:00:58,020 --> 00:01:01,620 on items 135. 9 00:01:01,620 --> 00:01:12,520 I just wanted to just stress to you about this and they have agreed to a further extension 10 00:01:12,520 --> 00:01:13,520 through October 18th, our next hearing. 11 00:01:13,520 --> 00:01:14,520 And I have a red line. 12 00:01:14,520 --> 00:01:15,520 Okay, yes please. 13 00:01:15,520 --> 00:01:16,520 Thank you. 14 00:01:16,520 --> 00:01:17,520 And in the red line you'll see that it's basically just a red line. 15 00:01:17,520 --> 00:01:18,520 Okay, I'll just hand it over to Judge Sticklter. 16 00:01:18,520 --> 00:01:45,640 Mr. Cudia, do you want to be heard? 17 00:01:45,640 --> 00:01:52,640 Good afternoon Your Honor, Judge Cudia for the United States Trustee. 18 00:01:52,640 --> 00:01:53,640 Ms. Candidate is correct. 19 00:01:53,640 --> 00:01:59,640 We do consent to the further interim order 345 release. 20 00:01:59,640 --> 00:02:01,600 Okay, thank you. 21 00:02:01,600 --> 00:02:02,600 We will get that in. 22 00:02:02,600 --> 00:02:09,600 Item 7 on the agenda is our request for conditional approval of the disclosure statement as well 23 00:02:09,600 --> 00:02:16,600 as the approval of proposed solicitation, voting, and noticing procedures, our proposed 24 00:02:16,600 --> 00:02:19,600 confirmation timeline, and the forms of solicitation and noticing procedures. 25 00:02:19,600 --> 00:02:24,600 We filed our initial planned disclosure statement on September 8th and adopted numbers 92 and 26 00:02:24,600 --> 00:02:25,600 93. 27 00:02:25,600 --> 00:02:30,600 And since that time we've been working with a number of parties to make adjustments, changes, 28 00:02:30,600 --> 00:02:34,600 and negotiate some resolutions to concerns that have been raised with the internal objections 29 00:02:34,600 --> 00:02:37,600 for comments and formal objections by our court. 30 00:02:37,600 --> 00:02:41,600 In particular, we've been working very, very closely with the U.S. Justice Office and the 31 00:02:41,600 --> 00:02:42,600 committee. 32 00:02:42,600 --> 00:02:47,600 And indeed, I think we've been working around the clock and we've got to really down to 33 00:02:47,600 --> 00:02:49,600 the wire with the committee on this one. 34 00:02:49,600 --> 00:02:53,600 So I want to thank the U.S. Justice Office and the committee for working so cooperatively 35 00:02:53,600 --> 00:02:54,600 and quickly with us. 36 00:02:54,600 --> 00:03:00,600 We have incorporated some changes to enough burdens of the planned disclosure statement 37 00:03:00,600 --> 00:03:03,600 that we filed on the 2nd of October, which was Monday. 38 00:03:03,600 --> 00:03:07,600 Those were at docket numbers 235 and 236. 39 00:03:07,600 --> 00:03:12,600 And yesterday and very late we filed new versions, which incorporate even more. 40 00:03:12,600 --> 00:03:13,600 You mean this morning? 41 00:03:13,600 --> 00:03:14,600 Yes. 42 00:03:14,600 --> 00:03:17,600 My days and nights are blending together. 43 00:03:17,600 --> 00:03:20,600 But yes, today you filed amended. 44 00:03:20,600 --> 00:03:21,600 Yes. 45 00:03:21,600 --> 00:03:22,600 Yes. 46 00:03:22,600 --> 00:03:23,600 Thank you for that, Judge. 47 00:03:23,600 --> 00:03:24,600 It was today. 48 00:03:24,600 --> 00:03:27,600 At docket numbers 251. 49 00:03:27,600 --> 00:03:34,600 And we also filed and revised the current conditional approval order this morning at docket numbers 50 00:03:34,600 --> 00:03:35,600 252. 51 00:03:35,600 --> 00:03:39,600 And if you would please, the court, I'd like to provide an overview of the planned disclosure 52 00:03:39,600 --> 00:03:41,600 statement before I turn to objections. 53 00:03:41,600 --> 00:03:43,600 Yes, that would be great. 54 00:03:43,600 --> 00:03:49,600 So, Your Honor, we believe that the disclosure statement contains adequate information that 55 00:03:49,600 --> 00:03:53,600 would allow voting parties to make an informed decision to vote over to reject or accept 56 00:03:53,600 --> 00:03:54,600 the plan. 57 00:03:54,600 --> 00:03:58,600 Among other things, the disclosure statement provides information concerning the debtor's 58 00:03:58,600 --> 00:04:03,600 business, organizational structure, capital structure, the key events that led to these 59 00:04:03,600 --> 00:04:07,600 cases, as well as the major events that have happened in those foreign cases. 60 00:04:07,600 --> 00:04:12,600 It provides an overview of the plan, including a classification and treatment of claims of 61 00:04:12,600 --> 00:04:13,600 interest. 62 00:04:13,600 --> 00:04:17,600 It outlines the potential risk factors associated with the plan. 63 00:04:17,600 --> 00:04:22,600 And also includes a liquidation analysis demonstrating the difference between recoveries 64 00:04:22,600 --> 00:04:26,600 under this plan versus a typical Chapter 7. 65 00:04:26,600 --> 00:04:30,600 That we filed our liquidation analysis today at docket number 253. 66 00:04:30,600 --> 00:04:32,600 Does Your Honor want to copy? 67 00:04:32,600 --> 00:04:33,600 I do. 68 00:04:33,600 --> 00:04:40,600 It also includes an explanation of the plan structure, including what I'll call the one 69 00:04:40,600 --> 00:04:43,600 and a half, two and a half toggles, rather. 70 00:04:43,600 --> 00:04:49,600 So, specifically, there are a number of restructuring events that are possible under the plan. 71 00:04:49,600 --> 00:04:54,600 And the first is a sale transaction, which would be consummated outside of the plan versus 72 00:04:54,600 --> 00:04:55,600 Chapter 163. 73 00:04:55,600 --> 00:04:59,600 And then the plan administrator would then wind out with a residual estate. 74 00:04:59,600 --> 00:05:03,600 There's also the possibility of a reorganization transaction, where a third party gets the 75 00:05:03,600 --> 00:05:09,600 capital contribution in exchange for 100% of the equity interest under reorganized debtors. 76 00:05:09,600 --> 00:05:14,600 And if those two fail or are not consummated, the plan would then toggle through a straight 77 00:05:14,600 --> 00:05:16,600 liquidation. 78 00:05:16,600 --> 00:05:21,600 The disclosure statement also includes a description of the releases under the plan. 79 00:05:21,600 --> 00:05:27,600 And just to sort of put down the record, former directors and officers are not released for 80 00:05:27,600 --> 00:05:29,600 review under the plan. 81 00:05:29,600 --> 00:05:34,600 And with certain exceptions, current directors and officers are also not released for review. 82 00:05:34,600 --> 00:05:38,600 And those are, current directors and officers are not released with respect to what we're 83 00:05:38,600 --> 00:05:43,600 calling 98-F wallet costs of action or avoidance action, other avoidance actions other than 84 00:05:43,600 --> 00:05:48,600 those related to ordinary course benefit and wages. 85 00:05:48,600 --> 00:05:55,600 But current directors and officers are expropriated under the plan. 86 00:05:55,600 --> 00:05:59,600 The disclosure statement also includes the description of who qualifies in the releasing 87 00:05:59,600 --> 00:06:02,600 party, as well as the opt-out procedures. 88 00:06:02,600 --> 00:06:07,600 And under those, all parties in the opt-out of the releases, the voting parties can check 89 00:06:07,600 --> 00:06:13,600 the opt-out box on the ballot, and the non-voting creditors in this include the box as well. 90 00:06:13,600 --> 00:06:18,600 So those parties can either file a formal objection to the releases with the court, 91 00:06:18,600 --> 00:06:22,600 or they can just check that box and return it to the print data. 92 00:06:22,600 --> 00:06:27,600 And of course, voting parties can also file formal objections with respect. 93 00:06:27,600 --> 00:06:34,600 Your Honor, turning to the objection and informal comments, many of them fell into two buckets 94 00:06:34,600 --> 00:06:38,600 in my mind, disclosure objections and confirmation objections. 95 00:06:38,600 --> 00:06:42,600 And I believe we've rebutted all of those, if not all, with the disclosure objections 96 00:06:42,600 --> 00:06:45,600 through language of the plan disclosure statement. 97 00:06:45,600 --> 00:06:50,600 The disclosure objections were focusing primarily on maintaining the status quo established under 98 00:06:50,600 --> 00:06:56,600 the final cash management order, and including information regarding the debtor's investigation 99 00:06:56,600 --> 00:07:01,600 and when it will be completed, and also available insurance. 100 00:07:01,600 --> 00:07:06,600 And these changes to the extent we could to the plan disclosure statement, and I'll just 101 00:07:06,600 --> 00:07:08,600 put into the record where they are. 102 00:07:08,600 --> 00:07:20,600 And the disclosure statement, it's section 6.4 and 7H6A, and sorry, 6H6A and 7A2, and 103 00:07:20,600 --> 00:07:23,600 above in Article 2.4 of the plan. 104 00:07:23,600 --> 00:07:27,600 And I also believe there's something in 6.9. 105 00:07:27,600 --> 00:07:30,600 Do you think there's something, I'm sorry, I didn't hear that. 106 00:07:30,600 --> 00:07:32,600 And Article 6.9 is on that as well. 107 00:07:32,600 --> 00:07:35,600 I think that's just gotten broken for a court. 108 00:07:35,600 --> 00:07:40,600 So your Honor, with respect to the detail that we provided about the investigation, 109 00:07:40,600 --> 00:07:44,600 I expect folks are going to be unhappy, they would like more. 110 00:07:44,600 --> 00:07:51,600 But what I'll say is that we are investigating the 98 FWALA issues as well as the property 111 00:07:51,600 --> 00:07:53,600 and estate issues as quickly as we can. 112 00:07:53,600 --> 00:07:55,600 These are very complicated issues. 113 00:07:55,600 --> 00:08:01,600 We are being as thoughtful as we can, and we're working as fast as we can, but either 114 00:08:01,600 --> 00:08:05,600 at this time we have nothing more to report than what's in the disclosure statement, 115 00:08:05,600 --> 00:08:09,600 or we cannot report more, we need to jeopardize the investigation. 116 00:08:09,600 --> 00:08:16,600 So what we've tried to do is balance the disclosures against where we are in the investigation. 117 00:08:16,600 --> 00:08:22,600 And in terms of when we'll be completed, we are taking a very thoughtful and careful approach. 118 00:08:22,600 --> 00:08:26,600 So at this time we don't have enough data to when those matters will be completed, 119 00:08:26,600 --> 00:08:29,600 either one of them, but we're working as quickly as we can. 120 00:08:29,600 --> 00:08:31,600 We're serving 2004 notices. 121 00:08:31,600 --> 00:08:36,600 We believe we're going to file a 2004 motion today, perhaps in a short time, 122 00:08:36,600 --> 00:08:41,600 so we can have it for only 18, but we're doing our best here. 123 00:08:41,600 --> 00:08:47,600 So we're doing what we can, but we don't have a definitive outside date. 124 00:08:47,600 --> 00:08:56,600 Let me ask you, if you discovered information that you could share, 125 00:08:56,600 --> 00:09:04,600 would you file like a supplement if you had it prior to the plan supplement? 126 00:09:04,600 --> 00:09:05,600 Yes, yes. 127 00:09:05,600 --> 00:09:12,600 I believe what I usually do in the case is I file a sort of a supplement to the disclosure statement 128 00:09:12,600 --> 00:09:20,600 at the time of the plan supplement that explains the changes from the disclosure statement that was solicited. 129 00:09:20,600 --> 00:09:26,600 And of course, we only anticipate recovery getting better, not worse, than the defendant on trial, 130 00:09:26,600 --> 00:09:30,600 or if that was sent beyond trial later today. 131 00:09:30,600 --> 00:09:34,600 So yes, we would definitely do that, Your Honor. 132 00:09:34,600 --> 00:09:39,600 And the confirmation objections were really related to the scope of the releases, 133 00:09:39,600 --> 00:09:42,600 which we've been negotiating with the committee very closely. 134 00:09:42,600 --> 00:09:49,600 And the treatment of claims, specifically cryptocurrency and FIA currency and customer accounts, 135 00:09:49,600 --> 00:09:57,600 which is touching on the property use date issue, which we haven't settled on yet. 136 00:09:57,600 --> 00:10:02,600 And with respect to confirmation objections, it's our position that virtually no one's ever preserved 137 00:10:02,600 --> 00:10:03,600 until the final hearing. 138 00:10:03,600 --> 00:10:08,600 We're not really being prejudiced by pushing those off. 139 00:10:08,600 --> 00:10:15,600 With that, I just want to walk, Your Honor, through changes being made since the final hearing, 140 00:10:15,600 --> 00:10:19,600 which was earlier, well, not early this morning. 141 00:10:19,600 --> 00:10:22,600 But I don't believe you have them. 142 00:10:22,600 --> 00:10:25,600 Okay, so perhaps... 143 00:10:25,600 --> 00:10:27,600 Well, maybe I should hear from objectors. 144 00:10:27,600 --> 00:10:30,600 I don't even know who's a live objection right now. 145 00:10:30,600 --> 00:10:31,600 I'm sorry, what? 146 00:10:31,600 --> 00:10:34,600 I don't even know who are live objections right now. 147 00:10:34,600 --> 00:10:39,600 I believe we have...I can run through what I believe has happened. 148 00:10:39,600 --> 00:10:47,600 I believe that we have resolved Allegheny Abelty objection by including the other secure claims talks, 149 00:10:47,600 --> 00:10:49,600 which was inadvertently left out. 150 00:10:49,600 --> 00:10:59,600 With respect to T.P. Labs, I believe we have resolved their disclosure objection by including language in 2.4 of the plan, 151 00:10:59,600 --> 00:11:06,600 but that they might want to put something on the record with respect to their reservation of rights to confirmation. 152 00:11:06,600 --> 00:11:10,600 And our claimant was a joiner to T.P. Labs. 153 00:11:10,600 --> 00:11:12,600 I'm not sure. 154 00:11:12,600 --> 00:11:18,600 I think they still have concerns about their disclosures with respect to the investigation. 155 00:11:18,600 --> 00:11:19,600 It's part of the note. 156 00:11:19,600 --> 00:11:23,600 And then AnchorCoin, we made a number of changes to the plan to address their concerns, 157 00:11:23,600 --> 00:11:28,600 and we did send the revised change pages to them before the hearing, 158 00:11:28,600 --> 00:11:37,600 but I have not heard from them one way or another, so I will see if we can do any of the objections. 159 00:11:37,600 --> 00:11:43,600 If parties could just let me know where we stand. 160 00:11:43,600 --> 00:11:49,600 If you're on this room with any specific questions, would you like us to do the reactivation for us? 161 00:11:49,600 --> 00:11:56,600 Well, I'd like to start with the objection, and then I'm assuming that you're in line with the debtor and the response. 162 00:11:56,600 --> 00:12:03,600 Okay. So why don't we hear from objectors so the committee can respond together with the debtors. 163 00:12:03,600 --> 00:12:07,600 And let's take an objector at a time. 164 00:12:07,600 --> 00:12:09,600 Good afternoon, Your Honor. 165 00:12:09,600 --> 00:12:10,600 Good afternoon. 166 00:12:10,600 --> 00:12:29,600 My name is Susan M. Smith and I'm the Pepper Hamilton Standards on behalf of AnchorCoin. AnchorCoin did found an objection at Doct. No. 221 and specifically raised three objections to the disclosure statement. Our first objection was that the initial disclosure statement didn't mention any of the resolutions reached in the final cash man order. 167 00:12:29,600 --> 00:12:37,600 There is language that has been added in 2.4 of the plan to address that the customer account funds will be for transfer. 168 00:12:37,600 --> 00:12:48,600 And so we might have a tweak or two here or there in the plan, but we're still inactive discussions with the debtors counsel. And we're comfortable at this point with proceeding and just reserve on that for confirmation. 169 00:12:48,600 --> 00:12:55,600 Our second objection is that there was inadequate information with respect to claims that were being released for available insurance. 170 00:12:55,600 --> 00:13:17,600 The debtors did address the DNO insurance and added additional disclosures there, but with respect to estate claims that were being released, that's still an open issue from our perspective, which tied directly into our third objection, which is that the debtors current directors and officers should not be released from any estate or third party claims in positive action. 171 00:13:17,600 --> 00:13:30,600 And it's our understanding that the debtors counsel has this preview that the debtors are proposing to release current directors and officers with respect to claims except for the defined non-released DNO claims. 172 00:13:30,600 --> 00:13:39,600 But the plan disclosure that we find are very confusing on this point. So nowhere in the definition of released parties are the current directors listed. 173 00:13:39,600 --> 00:13:52,600 But then the end of the definition says, quote, notwithstanding the foregoing, the directors and officers against whom the debtors hold non-released DNO claims as of the petition date shall not be released parties under the plan. 174 00:13:52,600 --> 00:13:59,600 But I've noted that definition of released parties only includes eight separate parties and none of them are the current DNOs. 175 00:13:59,600 --> 00:14:13,600 So it's our position that the plan disclosure statement needs to be amended to make clear exactly what releases the debtors are proposing to grant to current directors and officers with respect to those non-released DNO claims. 176 00:14:13,600 --> 00:14:31,600 And then coupling on to the end of this, the disclosure statement in our position lacks adequate information as to what claims are being released for current DNOs, what the value of those claims are, as well as what the contribution is that the DNOs are making in exchange for those releases. 177 00:14:31,600 --> 00:14:48,600 So we understand that there are ongoing investigations, but there's no other discussion of what these claims may be, what their value are, and it's really not adequate information to provide voting creditors with a reasonable understanding of what the plan is doing to make an informed judgment as to how to vote on the plan. 178 00:14:48,600 --> 00:15:01,600 Therefore, we would respectfully request that the court require an amendment to the disclosure statement to add sufficient information regarding what claims are being released, and the estimated value, and what contribution is being made in exchange. 179 00:15:01,600 --> 00:15:09,600 And then just with respect to confirmation, do you reserve the right to bring in confirmation objections related to the third party and end plan debtor releases? 180 00:15:09,600 --> 00:15:12,600 I don't know what that got. I'm happy to answer the questions you may have. 181 00:15:12,600 --> 00:15:23,600 I'd like to hear from the debtor or the committee of their position. And I know you were just getting documents, so I don't know if you heard the end of that. 182 00:15:23,600 --> 00:15:39,600 Your Honor, so a couple things. Mr. Bennett told me that I may have misstated the discover the releases for the current DNOs. They are not released parties with protection ID and a valid process of action. I wanted to make that clear. 183 00:15:39,600 --> 00:15:44,600 So I have the red line now. May I approach the panel? 184 00:15:44,600 --> 00:15:59,600 Certainly. 185 00:15:59,600 --> 00:16:16,600 Is this just a black line of edits since this morning? 186 00:16:16,600 --> 00:16:33,600 Your Honor, in the disclosure statement, we added a description of the release party. 187 00:16:33,600 --> 00:16:49,600 It's the 236th. 188 00:16:49,600 --> 00:17:03,600 It says, importantly, certain claims in how the action are preserved against current officers and directors, subject to applicable limitations and the debtor should not propose to release all the directors and officers under the plan. 189 00:17:03,600 --> 00:17:16,600 I went through what I think that the plan is key in terms of what the releases are related to. And I hate to jump around on this, but in the red line of the plan. 190 00:17:16,600 --> 00:17:19,600 The red line you just gave me. 191 00:17:19,600 --> 00:17:48,600 Okay. 192 00:17:48,600 --> 00:17:56,600 We were otherwise willing to modify the action against one of the officers. 193 00:17:56,600 --> 00:18:02,600 So maybe I'm just doing the leads, but I don't know that it's most clear. 194 00:18:02,600 --> 00:18:19,600 And we tried to work with anchor points to make it clear. 195 00:18:19,600 --> 00:18:41,600 I think that's a confirmation issue and that might change between now and then. So their rights with reflected are preserving my mind. And if we get some of the current government stage, perhaps the solution is to release directors and officers as part of the plan. 196 00:18:41,600 --> 00:18:55,600 Good afternoon. 197 00:18:55,600 --> 00:19:12,600 These folks have not been sleeping for days. 198 00:19:12,600 --> 00:19:26,600 So, and so what we're talking about in terms of what's easy and lots of other cases. 199 00:19:26,600 --> 00:19:42,600 Here, it's like almost no one's released. And whatever investigation is yielding will whatever value is accreted as a result of that. And as Mr. 200 00:19:42,600 --> 00:20:00,600 Now when we get to the supplement time, there's more information that's yielded that will be made available to everyone. So it's the same version. 201 00:20:00,600 --> 00:20:14,600 It's really the people who are working on this bankruptcy case, it's really the people who are on the special committee. Right. And not that much more. So, are there people who are at the company who are no longer there? 202 00:20:14,600 --> 00:20:27,600 Anybody related to the 98F issue? No releases. Any individual claims that creditors have? No releases. We can't really delineate all of those people, because it's sort of everybody. 203 00:20:27,600 --> 00:20:37,600 I don't know if that's really where the confusion lies as to why somebody might say there's not enough disclosure. There is enough disclosure, it's that there's not a lot of releases going on. 204 00:20:37,600 --> 00:20:45,600 That's probably what, I think that's what this new language, I'm just reading for the first time, we're working very fast. Right, I understand. Effectively says. 205 00:20:45,600 --> 00:21:05,600 Maybe, maybe anchor points council, I think she just got opportunity to look at it. So maybe. Yes, certainly. 206 00:21:15,600 --> 00:21:37,600 Okay. 207 00:21:37,600 --> 00:21:50,600 I appreciate that. 208 00:21:50,600 --> 00:22:09,600 Excuse me, does that resolve all of anchor coins issues, understanding that you're reserving rights for confirmation hearing. 209 00:22:09,600 --> 00:22:25,600 I guess I'm a little concerned with the ongoing investigation. 210 00:22:25,600 --> 00:22:50,600 What would it be, what information would you contemplate could be provided that would answer your question in light of the fact that it's ongoing investigation. 211 00:22:50,600 --> 00:22:55,600 Don't worry, I have an issue with the plan supplement date. It's not compliant with the local rules. 212 00:23:20,600 --> 00:23:47,600 I mean, what might be at stake and also on the flip side of what contribution is being made by five parties to be released related to that. 213 00:23:47,600 --> 00:24:14,600 Well, let me, I want to resolve the one outstanding issue here. 214 00:24:14,600 --> 00:24:41,600 Since we're client mid objection. So, is there any additional information that could be provided with respect to investigations. 215 00:24:41,600 --> 00:24:49,600 What happens if you have nothing available at the time of the confirmation hearing. That's, that's one of my overall arch arching concerns here. 216 00:24:49,600 --> 00:25:00,600 And I appreciate comments that were made to me at the prior hearing about these types of cases lose money and they need to run on a parallel track. 217 00:25:00,600 --> 00:25:16,600 But as a consequence of that, you don't have the information that you might otherwise have available if you were waiting a couple of weeks, but I don't know if that means weeks or months or years for an investigation. 218 00:25:16,600 --> 00:25:31,600 I think that, you know, it's not out of the realm of possibility. 219 00:25:31,600 --> 00:25:49,600 But, you know, it can go two ways, right. 220 00:25:49,600 --> 00:25:53,880 whether we agree under a certain contract 221 00:25:53,880 --> 00:25:56,500 that it's not property of the estate 222 00:25:56,500 --> 00:25:59,120 or whether we want to bring it to your honor 223 00:25:59,120 --> 00:26:01,280 for you to decide whether it's property of the estate 224 00:26:01,280 --> 00:26:02,760 based on our analysis. 225 00:26:02,760 --> 00:26:04,720 So those motions will be coming. 226 00:26:05,640 --> 00:26:09,440 We are serving, we've been active in the 2004 process 227 00:26:09,440 --> 00:26:13,400 and we'll be serving those 2004 motions 228 00:26:13,400 --> 00:26:15,760 and bringing as much as we can to your honor 229 00:26:15,760 --> 00:26:17,920 to decide before confirmation, 230 00:26:17,920 --> 00:26:21,680 but there's a mechanism set up in the plan 231 00:26:21,680 --> 00:26:23,600 so that if those continue, 232 00:26:23,600 --> 00:26:26,840 there'll be somebody to carry that on post effective date. 233 00:26:28,800 --> 00:26:31,600 But before, by the time we get to confirmation, 234 00:26:31,600 --> 00:26:34,480 now we will know which type of transaction we have 235 00:26:34,480 --> 00:26:37,680 and what the value is of that transaction. 236 00:26:37,680 --> 00:26:41,080 So we will have additional information for creditors, 237 00:26:41,080 --> 00:26:45,660 but I can't commit to a timeline on the investigation piece. 238 00:26:45,660 --> 00:26:46,500 So, please. 239 00:26:48,700 --> 00:26:49,540 Please. 240 00:26:49,540 --> 00:26:51,660 I'll just start on behalf of the committee. 241 00:26:51,660 --> 00:26:53,900 Your honor, I think it's important to understand 242 00:26:53,900 --> 00:26:55,700 the fundamental nature of this plan 243 00:26:55,700 --> 00:26:57,740 as it compares against other plans 244 00:26:57,740 --> 00:26:58,940 for disclosure purposes. 245 00:27:00,540 --> 00:27:03,460 This is not a reorganizing company plan. 246 00:27:03,460 --> 00:27:05,620 We are not rehabilitating a business, 247 00:27:05,620 --> 00:27:08,780 going into dishings and delivering stock to people 248 00:27:08,780 --> 00:27:10,740 and hoping for the best. 249 00:27:10,740 --> 00:27:11,700 Right. 250 00:27:11,700 --> 00:27:15,460 This is a sale of a non-operational business 251 00:27:15,460 --> 00:27:17,820 and that may be the path, it may be a different path. 252 00:27:17,820 --> 00:27:20,820 This is a transitional plan. 253 00:27:20,820 --> 00:27:24,540 This is a plan that takes where we are in bankruptcy 254 00:27:24,540 --> 00:27:26,860 with all this administrative expense, 255 00:27:26,860 --> 00:27:29,320 with all of the burden on your honor's docket, 256 00:27:29,320 --> 00:27:31,700 and says let's wrap it up, tie it up, 257 00:27:31,700 --> 00:27:34,140 and wind it down according to 258 00:27:34,140 --> 00:27:36,460 what value created going forward. 259 00:27:36,460 --> 00:27:39,700 I view those as more transitional plans. 260 00:27:39,700 --> 00:27:40,520 Okay. 261 00:27:40,520 --> 00:27:43,540 The nature of disclosure in the former matter, 262 00:27:43,540 --> 00:27:46,940 the typical widget reorganization is 263 00:27:46,940 --> 00:27:48,860 what am I getting, how am I getting it, 264 00:27:48,860 --> 00:27:51,300 what is it worth, what can I do with it? 265 00:27:51,300 --> 00:27:52,140 Right. 266 00:27:52,140 --> 00:27:54,100 In that scenario, if I'm getting stock, 267 00:27:54,100 --> 00:27:56,620 if I'm getting a beneficial interest in a recreation trust, 268 00:27:56,620 --> 00:27:58,780 if there's gonna be causes of action, 269 00:27:58,780 --> 00:28:03,020 of course you wanna know exactly what it is I'm getting, 270 00:28:03,020 --> 00:28:05,100 how I'm getting it, what it's worth. 271 00:28:05,100 --> 00:28:07,700 When you're in a transitional plan 272 00:28:07,700 --> 00:28:09,980 where we're using the means of chapter 11 273 00:28:09,980 --> 00:28:13,860 to wrap up in a very cost effective, efficient, 274 00:28:13,860 --> 00:28:17,060 and value accretive for the creditors, 275 00:28:17,060 --> 00:28:20,620 and we don't yet know those things, 276 00:28:20,620 --> 00:28:23,300 respectfully, your honor, nobody knows 277 00:28:24,660 --> 00:28:26,460 what's in it, how it's gonna be, where it's gonna go, 278 00:28:26,460 --> 00:28:28,060 because that's not the nature of the plan, 279 00:28:28,060 --> 00:28:30,260 that's not the nature of our case. 280 00:28:30,260 --> 00:28:31,860 We can't let our fingers stick it up a mirror 281 00:28:31,860 --> 00:28:32,900 and know how these things go 282 00:28:32,900 --> 00:28:34,940 because we don't know the answer to those questions, 283 00:28:34,940 --> 00:28:36,620 and sit down and say well we can't get 284 00:28:36,620 --> 00:28:38,380 a disclosure statement approved, 285 00:28:38,380 --> 00:28:41,140 and people won't know how to vote on whether or not 286 00:28:41,140 --> 00:28:44,340 wrapping it up is the better way to go. 287 00:28:44,340 --> 00:28:47,700 I don't think that's what 1125 does in this context, 288 00:28:47,700 --> 00:28:51,100 granted in other contexts, but that's not us here. 289 00:28:52,140 --> 00:28:53,820 Your honor, I had a few words that I wanted to say 290 00:28:53,820 --> 00:28:56,060 about what we're doing today, 291 00:28:56,060 --> 00:28:57,820 but I wanted to address that. 292 00:28:57,820 --> 00:28:58,900 Okay. 293 00:28:58,900 --> 00:28:59,860 Is it now or the time? 294 00:28:59,860 --> 00:29:00,700 Yeah, go ahead. 295 00:29:00,700 --> 00:29:01,700 Okay, thank you. 296 00:29:05,300 --> 00:29:07,100 The committee's position for purposes of care, 297 00:29:07,100 --> 00:29:08,900 we follow the reservation of rights, 298 00:29:10,020 --> 00:29:12,620 and we have no issue with what we've requested 299 00:29:12,620 --> 00:29:15,540 by the debtor today, and in saying that, 300 00:29:15,540 --> 00:29:18,300 I want to acknowledge something too. 301 00:29:18,300 --> 00:29:20,780 These folks have worked awfully hard, 302 00:29:20,780 --> 00:29:23,740 and they have met us more than halfway 303 00:29:23,740 --> 00:29:28,020 to accommodate the committee's informational needs, 304 00:29:28,020 --> 00:29:31,060 negotiating requests, making concessions, 305 00:29:31,060 --> 00:29:35,300 achieve a deal that I think from a plan perspective, 306 00:29:35,300 --> 00:29:37,420 we're almost there. 307 00:29:37,420 --> 00:29:38,980 Okay, I'm incredibly thankful, 308 00:29:38,980 --> 00:29:40,060 and I'm honored to work with them, 309 00:29:40,060 --> 00:29:41,260 they did a great job. 310 00:29:43,380 --> 00:29:46,620 And the board as well, the professionals especially. 311 00:29:46,620 --> 00:29:50,380 We're not today on board with a plan, 312 00:29:50,380 --> 00:29:52,980 and that's not that there's things in the plan 313 00:29:52,980 --> 00:29:54,500 that are making us uncomfortable, 314 00:29:54,500 --> 00:29:58,300 it's that this case is moving extremely quickly. 315 00:29:58,300 --> 00:29:59,620 For reasons that have to do with, 316 00:29:59,620 --> 00:30:00,700 as I just mentioned before, 317 00:30:00,700 --> 00:30:02,700 we're not reorganizing or building a business, 318 00:30:02,700 --> 00:30:06,020 we're running a self-processing or wrapping up the case. 319 00:30:06,020 --> 00:30:11,020 But it's kind of the old novel theory, 320 00:30:12,100 --> 00:30:13,940 it's what's below the surface of the water, 321 00:30:13,940 --> 00:30:15,580 you know, you write a good novel, 322 00:30:15,580 --> 00:30:16,500 it's the only little bit that you see, 323 00:30:16,500 --> 00:30:18,340 it's what's below the surface. 324 00:30:18,340 --> 00:30:21,780 This is complicated, this is a complicated case, 325 00:30:21,780 --> 00:30:23,900 and this company historically operated 326 00:30:23,900 --> 00:30:26,100 in a complicated and important way 327 00:30:26,100 --> 00:30:27,820 in a rather large ecosystem, 328 00:30:27,820 --> 00:30:32,100 and we're trying to get to all of that stuff here. 329 00:30:32,100 --> 00:30:34,420 And there's an M&A process going on. 330 00:30:34,420 --> 00:30:36,220 We think we're gonna be supportive, 331 00:30:36,220 --> 00:30:37,780 and we think that we'll be in a position 332 00:30:37,780 --> 00:30:40,420 to announce that support very quickly, 333 00:30:40,420 --> 00:30:42,140 maybe a week or two. 334 00:30:42,140 --> 00:30:43,260 But we're not there just today, 335 00:30:43,260 --> 00:30:45,940 we have some time down on the count of days just yet. 336 00:30:46,980 --> 00:30:50,100 We provided debtors council with a draft 337 00:30:50,100 --> 00:30:51,580 of a letter of support, 338 00:30:52,540 --> 00:30:55,300 a typical creditors committee letter of support. 339 00:30:55,300 --> 00:30:57,140 I do not believe it's been presented 340 00:30:57,140 --> 00:30:58,300 to your honor for approval. 341 00:30:58,300 --> 00:31:00,900 My understanding of the way that we've been operating 342 00:31:00,900 --> 00:31:02,660 under this is that, first off, 343 00:31:02,660 --> 00:31:05,060 I don't have authority to release that letter 344 00:31:05,060 --> 00:31:07,100 or authorize the debtors to release it to creditors 345 00:31:07,100 --> 00:31:08,980 just yet for working to achieve that. 346 00:31:10,380 --> 00:31:12,220 And I understand from the debtors' perspective 347 00:31:12,220 --> 00:31:14,420 that their view would be that the letter, 348 00:31:14,420 --> 00:31:16,060 since they have signed off, I believe, 349 00:31:16,060 --> 00:31:17,820 on the letter form, 350 00:31:17,820 --> 00:31:19,700 would be acceptable from their perspective. 351 00:31:19,700 --> 00:31:23,940 I just don't wanna be in 1125 risk 352 00:31:23,940 --> 00:31:26,660 of having either we submit that letter directly 353 00:31:26,660 --> 00:31:27,500 or the debtor do it, 354 00:31:27,500 --> 00:31:29,900 and then I go on with having the opportunity to approve it. 355 00:31:29,900 --> 00:31:31,860 I've certainly been involved in cases 356 00:31:31,860 --> 00:31:34,700 before many judges in Delaware where it was fine, 357 00:31:34,700 --> 00:31:36,100 as long as the debtor approved it 358 00:31:36,100 --> 00:31:38,780 and didn't need judicial increment or, 359 00:31:38,780 --> 00:31:41,020 but I don't wanna be presumptuous along those lines. 360 00:31:41,020 --> 00:31:42,860 So that procedure looks for us 361 00:31:42,860 --> 00:31:44,620 if it works for your honor. 362 00:31:44,620 --> 00:31:45,660 If you would like to, if you think that- 363 00:31:45,660 --> 00:31:47,620 I'd like to review it before it goes out. 364 00:31:47,620 --> 00:31:48,460 Excuse me, Your Honor. 365 00:31:48,460 --> 00:31:49,780 I'd like to review it before it goes out. 366 00:31:49,780 --> 00:31:50,620 Certainly. 367 00:31:51,660 --> 00:31:53,500 Your Honor, any questions for me? 368 00:31:53,500 --> 00:31:54,740 I don't, not now. 369 00:31:54,740 --> 00:31:55,580 Thank you. 370 00:31:57,660 --> 00:31:59,820 Yeah, I wasn't sure if we had the final version of that. 371 00:31:59,820 --> 00:32:00,660 No, that's- 372 00:32:00,660 --> 00:32:02,220 Whether it's, is your sir, 373 00:32:02,220 --> 00:32:06,180 if it wants to file it, do you want to know? 374 00:32:06,180 --> 00:32:07,260 I didn't know. 375 00:32:07,260 --> 00:32:08,260 Yeah, it's not- 376 00:32:08,260 --> 00:32:09,460 It did, once you finalize it. 377 00:32:09,460 --> 00:32:11,860 I don't, yeah, I don't wanna see it until- 378 00:32:11,860 --> 00:32:16,020 Well, okay, so presuming, presuming that- 379 00:32:16,020 --> 00:32:17,100 Because I understand the committee 380 00:32:17,100 --> 00:32:18,700 hasn't approved it yet, correct? 381 00:32:20,060 --> 00:32:22,420 I believe the committee has approved the form of the letter, 382 00:32:22,420 --> 00:32:24,260 but we're not yet positioned to announce 383 00:32:24,260 --> 00:32:25,100 that we're public- Right. 384 00:32:25,100 --> 00:32:27,940 That we have some things that we have to do first. 385 00:32:27,940 --> 00:32:30,140 Assuming that we get to that point, 386 00:32:30,140 --> 00:32:33,780 then I would be authorized to tender it to the debtors 387 00:32:33,780 --> 00:32:37,620 for solicitation or otherwise publicize it. 388 00:32:37,620 --> 00:32:39,580 But if your Honor wants, it believes it, 389 00:32:39,580 --> 00:32:41,700 and we think that makes a lot of sense. 390 00:32:41,700 --> 00:32:44,020 Should we do it under sort of a certification of counsel 391 00:32:44,020 --> 00:32:46,700 or notice? 392 00:32:46,700 --> 00:32:48,140 A notice is fine. 393 00:32:48,140 --> 00:32:51,580 Okay, and as long, well, I wanna be sure that 394 00:32:51,580 --> 00:32:56,140 whatever order we're doing today would enable. 395 00:32:56,140 --> 00:32:59,260 I'm a little bit confused, procedure-wise, I notice it up, 396 00:32:59,260 --> 00:33:01,620 but do I file a motion for a motion for further 397 00:33:01,620 --> 00:33:02,460 improvement process? 398 00:33:02,460 --> 00:33:05,380 Your Honor, it can't incline to approve the letter. 399 00:33:05,380 --> 00:33:08,620 We can include it as a revised proposed form of order 400 00:33:08,620 --> 00:33:09,580 and we can do it. 401 00:33:09,580 --> 00:33:10,940 Yeah, I just wanna see it. 402 00:33:11,980 --> 00:33:14,860 So notice, and then that's it. 403 00:33:14,860 --> 00:33:15,700 Thank you. 404 00:33:21,500 --> 00:33:22,860 Would you like me to walk through you now, 405 00:33:22,860 --> 00:33:25,460 the revenue, so we can hand it up? 406 00:33:25,460 --> 00:33:27,500 Yes, let's walk through them, and I understand 407 00:33:27,500 --> 00:33:29,340 that Anchor Queen still has an open issue, 408 00:33:29,340 --> 00:33:31,140 but let's walk through the changer. 409 00:33:38,340 --> 00:33:42,380 So since we filed the chapter one of the plan 410 00:33:42,380 --> 00:33:46,700 early this morning, we've had a number of changes 411 00:33:46,700 --> 00:33:51,140 for the community and connections as well. 412 00:33:51,140 --> 00:33:56,140 The first one is in 1.142, actually 1.142. 413 00:34:01,940 --> 00:34:04,340 And we deleted the concept of release date, 414 00:34:04,340 --> 00:34:07,860 federal compromised cause of action because we created 415 00:34:07,860 --> 00:34:10,020 a defined term called a speedier cause of action 416 00:34:10,020 --> 00:34:12,620 as we're simplified, they're saying, 417 00:34:12,620 --> 00:34:14,620 which that's a clean up. 418 00:34:15,980 --> 00:34:18,340 The creditors litigation trust agreement, 419 00:34:18,340 --> 00:34:21,340 we are allowing the, you created a creditors 420 00:34:21,340 --> 00:34:24,500 to prepare it, how it was originally drafted 421 00:34:24,500 --> 00:34:27,660 in a prior version was that they had to be, 422 00:34:27,660 --> 00:34:30,620 it had to be, it was really accessible to the committee, 423 00:34:30,620 --> 00:34:33,300 but now it's just to us. 424 00:34:33,300 --> 00:34:36,380 So there's sort of spearheading that agreement 425 00:34:36,380 --> 00:34:38,380 as well as the plan of interest for each 426 00:34:38,380 --> 00:34:39,780 speedier agreement. 427 00:34:39,780 --> 00:34:40,620 Okay. 428 00:34:42,100 --> 00:34:47,100 In 1.145, I'm sorry, 1.45, that was a change 429 00:34:47,100 --> 00:34:49,100 with the other questions. 430 00:34:51,660 --> 00:34:52,740 Same with 1.54. 431 00:34:57,940 --> 00:35:00,940 And same with 1.87, it'd be eight. 432 00:35:05,780 --> 00:35:07,820 And eight, nine. 433 00:35:07,820 --> 00:35:18,820 Bear with me just a second. 434 00:35:18,820 --> 00:35:19,660 Okay. 435 00:35:22,220 --> 00:35:26,940 In 1.101, this is a change right between the 436 00:35:26,940 --> 00:35:39,940 speedier cause of action and the speedier cause of action. 437 00:35:39,940 --> 00:35:43,940 In 1.149, again, we deleted that phrase 438 00:35:43,940 --> 00:35:48,060 because we corrected that with another defined term 439 00:35:48,060 --> 00:35:49,620 that was a clean up change. 440 00:35:49,620 --> 00:35:58,220 And that's the same in 1.165. 441 00:35:58,220 --> 00:36:05,220 In 1.166, speedier changes at request of the US, 442 00:36:05,220 --> 00:36:10,220 I'm sorry, committee, but we've also made some clarifying 443 00:36:10,220 --> 00:36:20,220 changes. 444 00:36:20,220 --> 00:36:22,220 Okay, I'm seeing that they're not being made into 445 00:36:22,220 --> 00:36:23,220 the straps. 446 00:36:23,220 --> 00:36:27,220 So when we file the plan after this hearing, 447 00:36:27,220 --> 00:36:29,220 I'll make those changes. 448 00:36:29,220 --> 00:36:32,220 But essentially, in the wind down better assets, 449 00:36:32,220 --> 00:36:36,220 for A, with respect to the cryptocurrency and the 450 00:36:36,220 --> 00:36:41,220 98th wallet and the insurance policies in C 451 00:36:41,220 --> 00:36:52,220 and the books and records in F, we had a qualifier 452 00:36:52,220 --> 00:36:55,220 that unless there's something to the contrary 453 00:36:55,220 --> 00:36:58,220 in the 10th supplement, a 10th supplement document 454 00:36:58,220 --> 00:37:00,220 or the restructuring transaction memorandum just to 455 00:37:00,220 --> 00:37:04,220 account for whatever the transaction ends up looking like, 456 00:37:04,220 --> 00:37:10,220 maybe there's a policy that needs to stay with the buyer. 457 00:37:10,220 --> 00:37:17,220 Or if the cash provided by the buyer satisfies all of 458 00:37:17,220 --> 00:37:21,220 the claims, they should be able to retain the 98th wallet 459 00:37:21,220 --> 00:37:23,220 and access, things like that. 460 00:37:23,220 --> 00:37:28,220 So just to sort of caveat it, make sure that it's not, 461 00:37:28,220 --> 00:37:35,220 we're not misrepresenting anything. 462 00:37:35,220 --> 00:37:43,220 Number 1.168 is another change from page 3.2. 463 00:37:43,220 --> 00:37:53,220 And 2.4, these are clean up changes. 464 00:37:53,220 --> 00:37:55,220 We've made a number of changes before the hearing 465 00:37:55,220 --> 00:37:59,220 to this paragraph to resolve paragraph objections, 466 00:37:59,220 --> 00:38:02,220 including with respect to the status quo piece 467 00:38:02,220 --> 00:38:04,220 regarding the added purchase of currency 468 00:38:04,220 --> 00:38:06,220 in customer accounts. 469 00:38:06,220 --> 00:38:09,220 We added transfer to this for anchor points so that 470 00:38:09,220 --> 00:38:12,220 it was clear that it really did maintain the status quo. 471 00:38:12,220 --> 00:38:14,220 This transfer was also covered in that final cash 472 00:38:14,220 --> 00:38:18,220 management order. 473 00:38:18,220 --> 00:38:25,220 Article 3.6, these are changes by the committee, 474 00:38:25,220 --> 00:38:27,220 which we agree to. 475 00:38:27,220 --> 00:38:30,220 And then in terms of the next page, you're going to see 476 00:38:30,220 --> 00:38:34,220 in each class of coin of, these are the subclasses 477 00:38:34,220 --> 00:38:37,220 in class 3, the demo on secured cutters. 478 00:38:37,220 --> 00:38:41,220 We've added at the committee's request this sort of 479 00:38:41,220 --> 00:38:46,220 sub paragraph need, which my understanding is some cash 480 00:38:46,220 --> 00:38:50,220 or cryptocurrency is allocated to a particular subclass. 481 00:38:50,220 --> 00:38:54,220 If it's not used, they can reshuffle that into another class, 482 00:38:54,220 --> 00:39:01,220 which we thought was appropriate. 483 00:39:01,220 --> 00:39:08,220 Who described, I mean I understand what the papers say, 484 00:39:08,220 --> 00:39:11,220 but on a more granular level, who are the creditors 485 00:39:11,220 --> 00:39:17,220 in the three classes, class 3 and its subclasses? 486 00:39:17,220 --> 00:39:21,220 So it's the general unsecured creditors for each debtor, 487 00:39:21,220 --> 00:39:24,220 and it's the trade creditors and the customers. 488 00:39:24,220 --> 00:39:28,220 Right, so are there many trade creditors? 489 00:39:28,220 --> 00:39:31,220 Or is this primarily customers? 490 00:39:31,220 --> 00:39:35,220 I think between the amount of trade debt and customer debt, 491 00:39:35,220 --> 00:39:37,220 it's definitely customer debt heavy. 492 00:39:37,220 --> 00:39:47,220 On the next page, I guess it's 33, number 6.7. 493 00:39:47,220 --> 00:39:53,220 Before you get there, can I just ask you, because we're here, 494 00:39:53,220 --> 00:39:59,220 explain to me the convenience class, class 4. 495 00:39:59,220 --> 00:40:02,220 So we've learned that we have a number, a large amount actually 496 00:40:02,220 --> 00:40:06,220 of claims that are very small and we just don't have creditors, 497 00:40:06,220 --> 00:40:08,220 and we've learned that they're very small claims, 498 00:40:08,220 --> 00:40:11,220 and we wanted to give them the opportunity to elect 499 00:40:11,220 --> 00:40:15,220 to have the convenience class where they can get their money faster, 500 00:40:15,220 --> 00:40:18,220 they don't have to participate in the claims reconciliation process 501 00:40:18,220 --> 00:40:20,220 or anything like that. 502 00:40:20,220 --> 00:40:23,220 And we thought that given sort of the nature of crypto 503 00:40:23,220 --> 00:40:28,220 and the diverse cryptocurrency holder body, 504 00:40:28,220 --> 00:40:34,220 that this might be attractive to people with lower rate base claims. 505 00:40:34,220 --> 00:40:37,220 But it doesn't, does it identify the amount? 506 00:40:37,220 --> 00:40:38,220 Yes. 507 00:40:38,220 --> 00:40:40,220 I'm sorry, I must have missed it. 508 00:40:40,220 --> 00:40:44,220 Maybe it's a definition. 509 00:40:44,220 --> 00:40:50,220 No, I think it's just not in this red line maybe, 510 00:40:50,220 --> 00:40:52,220 because I think it just changed to this, 511 00:40:52,220 --> 00:41:07,220 and the red line that we filed this morning and... 512 00:41:07,220 --> 00:41:09,220 Are you asking for the dollar threshold? 513 00:41:09,220 --> 00:41:10,220 Yes. 514 00:41:10,220 --> 00:41:11,220 That's $300 per dollar. 515 00:41:11,220 --> 00:41:12,220 Oh, okay. 516 00:41:12,220 --> 00:41:16,220 And just for context, that's more than 20,000 claims 517 00:41:16,220 --> 00:41:19,220 that we can eliminate through that mechanism. 518 00:41:19,220 --> 00:41:22,220 Of course, the administrative costs are not given with that. 519 00:41:22,220 --> 00:41:24,220 It seems worthwhile here. 520 00:41:24,220 --> 00:41:25,220 Okay. 521 00:41:25,220 --> 00:41:36,220 Thank you for that clarification. 522 00:41:36,220 --> 00:41:40,220 Okay, I think you're at 6.6 maybe. 523 00:41:40,220 --> 00:41:41,220 Yes. 524 00:41:41,220 --> 00:41:49,220 So, of each 33 at the top, in a prior version, 525 00:41:49,220 --> 00:41:51,220 we had given the criteria to pay pretty broad, 526 00:41:51,220 --> 00:41:54,220 and including with respect to potentially adverse tax consequences 527 00:41:54,220 --> 00:41:56,220 to their constituent. 528 00:41:56,220 --> 00:42:02,220 And what we've added here is that we can't reduce any of their 529 00:42:02,220 --> 00:42:11,220 consent rights into the planning. 530 00:42:11,220 --> 00:42:16,220 On the next page, I think it's just cleanup. 531 00:42:16,220 --> 00:42:19,220 And then 6.9. 532 00:42:19,220 --> 00:42:26,220 In discussions with the CETI, we have expanded the definition 533 00:42:26,220 --> 00:42:32,220 of the DNO claims to include positive actions related to 534 00:42:32,220 --> 00:42:35,220 redemption of equity by the debtors. 535 00:42:35,220 --> 00:42:39,220 I don't know that a lot of details aren't on it, 536 00:42:39,220 --> 00:42:43,220 but we agree that that would be a good fit. 537 00:42:43,220 --> 00:42:46,220 And so a lot of these changes are to clarify that, 538 00:42:46,220 --> 00:42:49,220 and also to, at the end of that paragraph, 539 00:42:49,220 --> 00:42:53,220 talk about what we discussed today with respect to the avoidance 540 00:42:53,220 --> 00:42:56,220 of these actions for directors and officers, 541 00:42:56,220 --> 00:43:00,220 current directors and officers. 542 00:43:00,220 --> 00:43:06,220 Turning to page 38, another one of those inept units. 543 00:43:06,220 --> 00:43:13,220 And on page 40, we agree to make this modification, 544 00:43:13,220 --> 00:43:15,220 putting some of the appropriate plan in the administrator. 545 00:43:15,220 --> 00:43:19,220 This is the rights and duties of the plan administrator section. 546 00:43:19,220 --> 00:43:24,220 Same with 41. 547 00:43:24,220 --> 00:43:33,220 And page 46, another one of the cleanups. 548 00:43:33,220 --> 00:43:36,220 Right above 6.16 is more clean up, 549 00:43:36,220 --> 00:43:41,220 and then 6.16 is modified to, you know, 550 00:43:41,220 --> 00:43:50,220 explain, cover all insurance policies, not just DNO policies. 551 00:43:50,220 --> 00:43:56,220 On 6.21, we originally had the debtors prior to maybe 552 00:43:56,220 --> 00:43:58,220 identifying the best cause of action, 553 00:43:58,220 --> 00:44:04,220 and now that we've kicked that out, we're okay with that. 554 00:44:04,220 --> 00:44:11,220 On page 46, the changes to the prior insurance section I just 555 00:44:11,220 --> 00:44:17,220 discussed, obviously, so we agree to believe them. 556 00:44:17,220 --> 00:44:21,220 Those are all the changes to the plan for today. 557 00:44:21,220 --> 00:44:22,220 Okay. 558 00:44:22,220 --> 00:44:28,220 Yes, please. 559 00:44:28,220 --> 00:44:34,220 Any of these changes might be just implementing the changes 560 00:44:34,220 --> 00:44:59,220 that we just discussed, so I'll take a look at those. 561 00:44:59,220 --> 00:45:01,220 So it's number one. 562 00:45:01,220 --> 00:45:05,220 So I think it brings us all the way to 86, 563 00:45:05,220 --> 00:45:10,220 which is I discussed earlier about we put an explanation of 564 00:45:10,220 --> 00:45:15,220 the releases and actual vision in the disclosure statement to 565 00:45:15,220 --> 00:45:18,220 try and address everyone's concerns so that, you know, 566 00:45:18,220 --> 00:45:29,220 people didn't have to parse through all the definitions. 567 00:45:29,220 --> 00:45:32,220 So that's the last reference back to where they defined more 568 00:45:59,220 --> 00:46:04,220 information. 569 00:46:29,220 --> 00:46:37,220 Just I think on page 87, I think each of the release 570 00:46:37,220 --> 00:46:52,220 professionals is duplicative of the preceding page, bullet point 6. 571 00:46:52,220 --> 00:47:03,220 Oh, they're exculpated. 572 00:47:03,220 --> 00:47:06,220 No, no, no, that was my misreading. 573 00:47:06,220 --> 00:47:07,220 Sorry. 574 00:47:07,220 --> 00:47:24,220 That happens when you publicly read things. 575 00:47:24,220 --> 00:47:30,220 Okay. 576 00:47:30,220 --> 00:47:37,220 I do not. 577 00:47:37,220 --> 00:47:41,220 Actually, I don't really want to discuss the order until we go 578 00:47:41,220 --> 00:47:47,220 through objections, and I also would like an explanation on 579 00:47:47,220 --> 00:47:53,220 the liquidation analysis because I don't understand it. 580 00:47:53,220 --> 00:47:57,220 And I understand that that's for another day, but I need to 581 00:47:57,220 --> 00:48:02,220 determine that this is, that I don't have a feasibility issue 582 00:48:02,220 --> 00:48:16,220 that would preclude solicitation. 583 00:48:16,220 --> 00:48:19,220 And maybe we should just wait until we hear from an objector, 584 00:48:19,220 --> 00:48:23,220 but at some point I'm going to want to hear from it, pull on it, 585 00:48:23,220 --> 00:48:32,220 but I want to hear from objectors first. 586 00:48:32,220 --> 00:48:36,220 So I think where we left off with respect to objections was 587 00:48:36,220 --> 00:48:44,220 AnchorCoin still having an open issue with respect to what was 588 00:48:44,220 --> 00:48:46,220 being disclosed with respect to investigation. 589 00:48:46,220 --> 00:48:53,220 Is that correct? 590 00:48:53,220 --> 00:48:55,220 Yes, Your Honor. 591 00:48:55,220 --> 00:48:58,220 So I was pinching a bit today, catching up from being out last 592 00:48:58,220 --> 00:48:59,220 week. 593 00:48:59,220 --> 00:49:05,220 I do think that the changes to, I think you said, the 6.9, 594 00:49:05,220 --> 00:49:09,220 changing the card out from the current letters, current 595 00:49:09,220 --> 00:49:17,220 directors and officers being released for only the 98-F wallet 596 00:49:17,220 --> 00:49:21,220 causes of action to the broader all claims and causes of action. 597 00:49:21,220 --> 00:49:24,220 Going through that just now is very helpful to see more 598 00:49:24,220 --> 00:49:25,220 specifically. 599 00:49:25,220 --> 00:49:28,220 So my understanding then is that the only thing that current 600 00:49:28,220 --> 00:49:32,220 directors and officers are being released for is the order and 601 00:49:32,220 --> 00:49:34,220 course of major ordinance actions. 602 00:49:34,220 --> 00:49:37,220 And so with that, Your Honor, I think we could stand down on the 603 00:49:37,220 --> 00:49:40,220 fact that the order is not being released. 604 00:49:40,220 --> 00:49:41,220 Okay. 605 00:49:41,220 --> 00:49:45,220 And is that, her understanding is correct. 606 00:49:45,220 --> 00:49:46,220 Your Honor, almost. 607 00:49:46,220 --> 00:49:50,220 They're not being released for anything but the ordinance 608 00:49:50,220 --> 00:49:54,220 actions, but also if they're not found liable with respect to 609 00:49:54,220 --> 00:50:00,220 the 98-F issues, it will be released from those. 610 00:50:00,220 --> 00:50:10,220 Again, they are ex-publicated. 611 00:50:10,220 --> 00:50:14,220 Well, so I guess it does kind of bring us back to how do we 612 00:50:14,220 --> 00:50:17,220 know what the creditors are agreeing to release or not 613 00:50:17,220 --> 00:50:22,220 release if they don't have any insight into what stuff the 614 00:50:22,220 --> 00:50:25,220 investigation is or what things were looked at or something 615 00:50:25,220 --> 00:50:30,220 like that. 616 00:50:30,220 --> 00:50:32,220 I'm sorry, Mr. Stark. 617 00:50:32,220 --> 00:50:33,220 I can't hear you. 618 00:50:33,220 --> 00:50:35,220 Oh, are you talking? 619 00:50:35,220 --> 00:50:36,220 Do you need a minute? 620 00:50:36,220 --> 00:50:37,220 No. 621 00:50:37,220 --> 00:50:40,220 So he was asking if it was related to the release of the 622 00:50:40,220 --> 00:50:41,220 extradition. 623 00:50:41,220 --> 00:50:45,220 I didn't hear the extradition related to post-petition 624 00:50:45,220 --> 00:50:46,220 activities. 625 00:50:46,220 --> 00:50:47,220 That's our concern. 626 00:50:47,220 --> 00:50:51,220 Our concern is with the release and hearing that if the 627 00:50:51,220 --> 00:50:55,220 investigation shows that a current director and officer is 628 00:50:55,220 --> 00:50:59,220 not liable for a 98-X wallet cause of action, I think it 629 00:50:59,220 --> 00:51:04,220 comes back to our client and other creditors concerned of how 630 00:51:04,220 --> 00:51:06,220 do we know what that investigation entailed, what 631 00:51:06,220 --> 00:51:09,220 causes and things of action were looked at and evaluated and 632 00:51:09,220 --> 00:51:14,220 found to not be liable for if one needs to accept a claim that 633 00:51:14,220 --> 00:51:17,220 would release them before we know the outcome of what steps 634 00:51:17,220 --> 00:51:20,220 were taken. 635 00:51:20,220 --> 00:51:21,220 Yes, please. 636 00:51:21,220 --> 00:51:22,220 There's no releases. 637 00:51:22,220 --> 00:51:25,220 All that's happening is it's channeled to insurance. 638 00:51:25,220 --> 00:51:29,220 It's a mechanic that is used in many, many, many, many, many 639 00:51:29,220 --> 00:51:31,220 of the plans that I've been involved in. 640 00:51:31,220 --> 00:51:34,220 Never once has anybody said to me it has to delineate before 641 00:51:34,220 --> 00:51:36,220 in the disclosure statement what and how. 642 00:51:36,220 --> 00:51:40,220 In cases where the knowledge is ready and available, we don't 643 00:51:40,220 --> 00:51:41,220 have to do that. 644 00:51:41,220 --> 00:51:43,220 We don't have the information ready and available. 645 00:51:43,220 --> 00:51:46,220 People are voting as whether or not on the whole the deal is 646 00:51:46,220 --> 00:51:47,220 sufficient. 647 00:51:47,220 --> 00:51:50,220 If you don't like the deal, vote against it. 648 00:51:50,220 --> 00:51:52,220 If you want to do something else, let us know. 649 00:51:52,220 --> 00:51:56,220 But there isn't information to add and no one's getting the 650 00:51:56,220 --> 00:51:57,220 leases. 651 00:51:57,220 --> 00:51:59,220 It's just if they're found liable, it's done by the 652 00:51:59,220 --> 00:52:02,220 insurance, not their own personal accounts. 653 00:52:02,220 --> 00:52:05,220 I don't think that's what the plan says. 654 00:52:05,220 --> 00:52:08,220 My point was not that they're being released. 655 00:52:08,220 --> 00:52:11,220 It was that if they're not liable and they have to get a 656 00:52:11,220 --> 00:52:17,220 call issued, then they're off the hook. 657 00:52:17,220 --> 00:52:20,220 If it's decided that they weren't receiving no knowledge, 658 00:52:20,220 --> 00:52:25,220 nothing would get these issues, then they're just not liable. 659 00:52:25,220 --> 00:52:27,220 It's not a release. 660 00:52:27,220 --> 00:52:30,220 It's just that we're probably that we're just being. 661 00:52:30,220 --> 00:52:33,220 You're saying under the plan they are not released. 662 00:52:33,220 --> 00:52:34,220 Right. 663 00:52:34,220 --> 00:52:38,220 If there's subsequent litigation post-effectivity and they are 664 00:52:38,220 --> 00:52:41,220 found not liable, it is what it is. 665 00:52:41,220 --> 00:52:43,220 But they are not getting a release. 666 00:52:43,220 --> 00:52:51,220 No. 667 00:52:51,220 --> 00:52:54,220 With our presentation, you're saying that they are not 668 00:52:54,220 --> 00:52:55,220 released. 669 00:52:55,220 --> 00:52:57,220 It's just a matter of if they're found liable or not. 670 00:52:57,220 --> 00:52:58,220 Okay. 671 00:52:58,220 --> 00:53:00,220 Thank you. 672 00:53:00,220 --> 00:53:06,220 Other objectors? 673 00:53:06,220 --> 00:53:09,220 John Weiss of Paschman Stein, 674 00:53:09,220 --> 00:53:12,220 Walter Hayden on behalf of both Tiki Labs Inc. 675 00:53:12,220 --> 00:53:14,220 and Allegheny Casualty Company. 676 00:53:14,220 --> 00:53:16,220 Good afternoon, Mr. Weiss. 677 00:53:16,220 --> 00:53:18,220 Thank you, Judge Nichols. 678 00:53:18,220 --> 00:53:20,220 With respect to Allegheny Casualty, 679 00:53:20,220 --> 00:53:22,220 whom I'll speak for today, 680 00:53:22,220 --> 00:53:25,220 and then I will seat the podium to my co-counsel, 681 00:53:25,220 --> 00:53:28,220 Tracy Shafroth from the Keller Fentanyl Nudie Fund. 682 00:53:28,220 --> 00:53:30,220 With respect to Allegheny Casualty, 683 00:53:30,220 --> 00:53:34,220 we appreciate the debtors adding the secure class to the plan. 684 00:53:34,220 --> 00:53:37,220 We do have issues that we'll have to address in connection 685 00:53:37,220 --> 00:53:39,220 with the plan with respect to overall treatment and 686 00:53:39,220 --> 00:53:41,220 collateral that we're holding, et cetera. 687 00:53:41,220 --> 00:53:44,220 We anticipate continuing to work with the debtors. 688 00:53:44,220 --> 00:53:47,220 Those discussions have begun and we'll simply preserve rights 689 00:53:47,220 --> 00:53:51,220 vis-à-vis plan issues to be addressed at that time if necessary. 690 00:53:51,220 --> 00:53:53,220 And other than that, 691 00:53:53,220 --> 00:53:56,220 if I could just turn the podium over please to my co-counsel. 692 00:53:56,220 --> 00:53:59,220 And with that introduction, 693 00:53:59,220 --> 00:54:01,220 I believe she'll be speaking for Tiki Labs. 694 00:54:01,220 --> 00:54:02,220 Okay. 695 00:54:02,220 --> 00:54:04,220 Thank you. 696 00:54:04,220 --> 00:54:06,220 Ms. Shafroth? 697 00:54:06,220 --> 00:54:07,220 It's Shafroth. 698 00:54:07,220 --> 00:54:08,220 Thank you, Your Honor. 699 00:54:08,220 --> 00:54:10,220 I'm sorry, pronounce that again. 700 00:54:10,220 --> 00:54:11,220 Tracy Shafroth. 701 00:54:11,220 --> 00:54:12,220 Okay. 702 00:54:12,220 --> 00:54:13,220 Good afternoon. 703 00:54:13,220 --> 00:54:15,220 Good afternoon, Your Honor. 704 00:54:15,220 --> 00:54:17,220 I'm with Keller Fentanyl Nudie Fund, LLP. 705 00:54:17,220 --> 00:54:19,220 As Mr. Weiss mentioned, 706 00:54:19,220 --> 00:54:21,220 we represent Tiki Labs, Inc., 707 00:54:21,220 --> 00:54:24,220 doing business as Audius, Inc. 708 00:54:24,220 --> 00:54:28,220 So we appreciate all of the work that the debtors have done to 709 00:54:28,220 --> 00:54:32,220 address the objections to the extent they can at this point. 710 00:54:32,220 --> 00:54:33,220 It's a closure statement, 711 00:54:33,220 --> 00:54:36,220 but we did want to make sure we preserved our rights with respect to 712 00:54:36,220 --> 00:54:37,220 those objections. 713 00:54:37,220 --> 00:54:42,220 Tiki Labs holds a significant amount of cryptocurrency in a customer 714 00:54:42,220 --> 00:54:43,220 custody account. 715 00:54:43,220 --> 00:54:48,220 And so the determination of non-estate assets in the account treatment 716 00:54:48,220 --> 00:54:51,220 issues are of paramount importance to Tiki. 717 00:54:51,220 --> 00:54:55,220 We appreciate that the debtors added language, 718 00:54:55,220 --> 00:54:59,220 making it clear that they would not take tokens subject to customer 719 00:54:59,220 --> 00:55:01,220 equipment without a court order. 720 00:55:01,220 --> 00:55:02,220 But at this point, 721 00:55:02,220 --> 00:55:06,220 without an understanding of the debtors, you know, 722 00:55:06,220 --> 00:55:10,220 the debtors have not taken a position yet on whether customer 723 00:55:10,220 --> 00:55:13,220 custody accounts or the cryptocurrencies in those accounts are a state 724 00:55:13,220 --> 00:55:16,220 property and how those will be treated. 725 00:55:16,220 --> 00:55:18,220 So without that information, 726 00:55:18,220 --> 00:55:22,220 Tiki Labs doesn't have adequate information to be able to make an informed 727 00:55:22,220 --> 00:55:24,220 vote on the plan. 728 00:55:24,220 --> 00:55:25,220 So at this point, 729 00:55:25,220 --> 00:55:30,220 we just wanted to make sure that we preserve Tiki Labs rights to raise 730 00:55:30,220 --> 00:55:35,220 those objections to the adequacy of the information in conjunction with the 731 00:55:35,220 --> 00:55:38,220 final approval of the disclosure statement and the confirmation of the 732 00:55:38,220 --> 00:55:45,220 plan. 733 00:55:45,220 --> 00:56:09,220 Bear with me a second. 734 00:56:09,220 --> 00:56:10,220 Let me ask the debtors. 735 00:56:10,220 --> 00:56:16,220 I'm looking at local rule 30 17 to objections not made at the time of the 736 00:56:16,220 --> 00:56:21,220 hearing on voting procedures, form and notice and form of ballot. 737 00:56:21,220 --> 00:56:24,220 Aren't considered at the time of confirmation. 738 00:56:24,220 --> 00:56:30,220 Is it the debtors position that Tiki can reserve its right with respect to 739 00:56:30,220 --> 00:56:34,220 customer accounts to the hearing of the confirmation hearing to address the 740 00:56:34,220 --> 00:56:36,220 adequacy of the disclosure statement? 741 00:56:36,220 --> 00:56:52,220 Yes. 742 00:56:52,220 --> 00:56:53,220 Okay. 743 00:56:52,220 --> 00:57:03,220 Do you have any issues with that position or the committee? 744 00:57:03,220 --> 00:57:21,220 Yes. 745 00:57:21,220 --> 00:57:22,220 But as to Tiki, 746 00:57:22,220 --> 00:57:26,220 the U.S. trustee doesn't take a position whether those issues are reserved 747 00:57:26,220 --> 00:57:29,220 regarding adequacy of the disclosure statement. 748 00:57:29,220 --> 00:57:30,220 Okay. 749 00:57:30,220 --> 00:57:31,220 Terrific. 750 00:57:31,220 --> 00:57:33,220 Thank you. 751 00:57:33,220 --> 00:57:35,220 And Mr. Kudia, let me thank you. 752 00:57:35,220 --> 00:57:38,220 I can tell the U.S. trustee had a hand in many of the modifications and I 753 00:57:38,220 --> 00:57:46,220 appreciate that. 754 00:57:46,220 --> 00:57:47,220 Okay. 755 00:57:47,220 --> 00:57:48,220 All right. 756 00:57:48,220 --> 00:57:53,220 Were there any other issues with respect to Tiki? 757 00:57:53,220 --> 00:57:54,220 No, that was it, Your Honor. 758 00:57:54,220 --> 00:57:55,220 Thank you. 759 00:57:55,220 --> 00:57:56,220 Okay. 760 00:57:56,220 --> 00:57:57,220 Thank you. 761 00:57:57,220 --> 00:57:58,220 Other. 762 00:57:58,220 --> 00:58:00,220 Your Honor, this is David Newman. 763 00:58:00,220 --> 00:58:02,220 I'm a client of the U.S. 764 00:58:02,220 --> 00:58:06,220 Trustee Development on behalf of CoinBits. 765 00:58:06,220 --> 00:58:08,220 I filed a joiner to Ms. 766 00:58:08,220 --> 00:58:11,220 Schaffroth's objection. 767 00:58:11,220 --> 00:58:15,220 It was just very well written and really encapsulated the concerns that my 768 00:58:15,220 --> 00:58:19,220 client has. 769 00:58:19,220 --> 00:58:26,220 We, my client and its users are the owners of about a little over 100 770 00:58:26,220 --> 00:58:32,220 bitcoins out of, I believe, a pool of 300 bitcoins that the debtors have under 771 00:58:32,220 --> 00:58:37,220 their trust, under various trust agreements. 772 00:58:37,220 --> 00:58:42,220 And our only concern is that we know that as far as we can tell from the 773 00:58:42,220 --> 00:58:47,220 disclosure statement that Bitcoin, BTC, was never involved at all in this 774 00:58:47,220 --> 00:58:49,220 wallet issue. 775 00:58:49,220 --> 00:58:55,220 And so our concern is without knowing the timing of the supplement and then 776 00:58:55,220 --> 00:59:02,220 knowing at least a statement as to where the matter is currently, just where 777 00:59:02,220 --> 00:59:08,220 the investigation is, is it ongoing, what stage it's at. 778 00:59:08,220 --> 00:59:16,220 It's really hard to get over our objections to the fact that our ownership 779 00:59:16,220 --> 00:59:24,220 in BTC and the process with regards to resolving the ownership issues as to 780 00:59:24,220 --> 00:59:32,220 BTC are not disclosed in any way in the disclosure statement as those BTC 781 00:59:32,220 --> 00:59:38,220 issues, the Bitcoin issues are unique to Bitcoin holders as it doesn't seem 782 00:59:38,220 --> 00:59:46,220 like anything was, that any issues in this case affected the BTC. 783 00:59:46,220 --> 00:59:51,220 The BTC rights under the FireBlox technology that was used to maintain 784 00:59:51,220 --> 00:59:56,220 wallets in this case. 785 00:59:56,220 --> 01:00:23,220 Let me hear from the debtors. 786 01:00:23,220 --> 01:00:35,220 I can't put more information in if I don't have it. 787 01:00:35,220 --> 01:00:54,220 Yes. 788 01:00:54,220 --> 01:01:10,220 That's sufficient for us, Your Honor. 789 01:01:10,220 --> 01:01:17,220 So I would encourage you to continue to talk and your issue is reserved for the 790 01:01:17,220 --> 01:01:19,220 final hearing. 791 01:01:19,220 --> 01:01:29,220 No, actually, sorry. 792 01:01:29,220 --> 01:01:38,220 And let me just reiterate to Mr. Newman, today's approval of a disclosure 793 01:01:38,220 --> 01:01:42,220 statement would be only on the interim basis. 794 01:01:42,220 --> 01:01:44,220 So it will be readdressed. 795 01:01:44,220 --> 01:01:49,220 Your Honor, I really do appreciate it. 796 01:01:49,220 --> 01:01:52,220 Thank you so much for the opportunity to appear before you. 797 01:01:52,220 --> 01:01:53,220 I do appreciate it. 798 01:01:53,220 --> 01:01:54,220 Certainly. 799 01:01:54,220 --> 01:02:05,220 I would like explanation. 800 01:02:05,220 --> 01:02:07,220 I appreciate liquidity. 801 01:02:07,220 --> 01:02:11,220 I mean, the liquidation analysis is not before me today. 802 01:02:11,220 --> 01:02:17,220 But I could not or did not understand that I, I'm afraid I didn't bring it out 803 01:02:17,220 --> 01:02:26,220 here with me, how party accreditors received more in an 11 than a 7 based on 804 01:02:26,220 --> 01:02:29,220 the analysis that was attached. 805 01:02:29,220 --> 01:02:34,220 With your honor's permission, I would ask Mr. Martinez to come to the program 806 01:02:34,220 --> 01:02:36,220 and walk down through this. 807 01:02:36,220 --> 01:02:37,220 Okay. 808 01:02:37,220 --> 01:02:45,220 Could you just wait a second while I find the report that was actually provided? 809 01:02:45,220 --> 01:02:46,220 I'm sorry, Your Honor. 810 01:02:46,220 --> 01:02:48,220 I can't find my copy of the report. 811 01:02:48,220 --> 01:02:49,220 That's all. 812 01:02:49,220 --> 01:02:56,220 Just give me a second. 813 01:02:56,220 --> 01:03:13,220 I have it. 814 01:03:13,220 --> 01:03:14,220 Good afternoon. 815 01:03:14,220 --> 01:03:24,220 I don't wait one second. 816 01:03:24,220 --> 01:03:29,220 We're more into this as we get into the Botanicalieties because they're 817 01:03:29,220 --> 01:03:31,220 sold and Kate has a focus on them. 818 01:03:31,220 --> 01:03:36,220 You can move us to some of yourVoice directly to that other population. 819 01:03:36,220 --> 01:03:38,220 I want to put this to the vote. 820 01:03:38,220 --> 01:03:42,220 Section 10, if you've ever had an sama. 821 01:03:41,220 --> 01:03:46,220 Since he's a financial adviser I would have him sworn in. 822 01:03:46,220 --> 01:03:48,220 You can stand there, sir. 823 01:03:48,220 --> 01:03:51,220 But you're going to be sworn in. 824 01:03:51,220 --> 01:03:53,220 Could you please raise your right hand. 825 01:03:53,220 --> 01:03:59,300 Thank you. 826 01:03:59,300 --> 01:04:02,600 Thank you Mr. Murphy. 827 01:04:02,600 --> 01:04:11,640 I had a question about the liquidation analysis because I don't appreciate how, I understand 828 01:04:11,640 --> 01:04:17,040 this says there would be a creditor would receive more an 11 than a 7, but I don't 829 01:04:17,040 --> 01:04:26,980 understand based on the numbers that are attached. Particularly I'm looking at the Chapter 11 830 01:04:26,980 --> 01:04:36,580 orderly wind down that's on page 13 of 14 versus the Chapter 7 liquidation that's on 831 01:04:36,580 --> 01:04:47,020 page 14 of 14 where it reflects an 81.4% recovery as a mid-case to Chapter 7 and yet if I look 832 01:04:47,020 --> 01:04:54,580 at the Chapter 11 orderly wind down it breaks it out for customer claims trade convenience 833 01:04:54,580 --> 01:04:58,980 contract and it seems to be a lesser percentage to me. 834 01:04:58,980 --> 01:05:04,460 I'd like to recalculate that, that's an error. 835 01:05:04,460 --> 01:05:09,020 Oh okay because I'm like, all right, you know what would it be helpful if we took a quick 836 01:05:09,020 --> 01:05:10,020 break? 837 01:05:10,020 --> 01:05:11,020 Yes. 838 01:05:11,020 --> 01:05:18,540 Okay, all right, all right that would be very helpful because I didn't want to make a representation 839 01:05:18,540 --> 01:05:23,700 about something being patently unconfirmable if there's an error. So why don't we take 840 01:05:23,700 --> 01:05:26,700 10 minutes? 841 01:05:26,700 --> 01:05:41,780 Okay, all right, let's take a, we'll stand and recess for 10 minutes. 842 01:05:41,780 --> 01:05:57,340 Okay, all right. 843 01:05:57,340 --> 01:06:12,900 Okay, all right. 844 01:06:12,900 --> 01:06:28,460 Okay, all right. 845 01:06:28,460 --> 01:06:44,020 Okay, all right. 846 01:06:44,020 --> 01:06:59,580 Okay, all right. 847 01:06:59,580 --> 01:07:15,140 Okay, all right. 848 01:07:15,140 --> 01:07:30,700 Okay, all right. 849 01:07:30,700 --> 01:07:46,260 Okay, all right. 850 01:07:46,260 --> 01:08:01,820 Okay, all right. 851 01:08:01,820 --> 01:08:17,380 Okay, all right. 852 01:08:17,380 --> 01:08:32,940 Okay, all right. 853 01:08:32,940 --> 01:08:48,500 Okay, all right. 854 01:08:48,500 --> 01:09:04,060 Okay, all right. 855 01:09:04,060 --> 01:09:19,620 Okay, all right. 856 01:09:19,620 --> 01:09:35,180 Okay, all right. 857 01:09:35,180 --> 01:09:50,740 Okay, all right. 858 01:09:50,740 --> 01:10:06,300 Okay, all right. 859 01:10:06,300 --> 01:10:21,860 Okay, all right. 860 01:10:21,860 --> 01:10:37,420 Okay, all right. 861 01:10:37,420 --> 01:10:52,980 Okay, all right. 862 01:10:52,980 --> 01:11:08,540 Okay, all right. 863 01:11:08,540 --> 01:11:24,100 Okay, all right. 864 01:11:24,100 --> 01:11:39,660 Okay, all right. 865 01:11:39,660 --> 01:11:55,220 Okay, all right. 866 01:11:55,220 --> 01:12:10,780 Okay, all right. 867 01:12:10,780 --> 01:12:36,340 Okay, all right. 868 01:12:36,340 --> 01:12:55,820 Okay, all right. 869 01:12:55,820 --> 01:13:14,380 Okay, all right. 870 01:13:14,380 --> 01:13:29,940 Okay, all right. 871 01:13:29,940 --> 01:13:56,500 Okay, all right. 872 01:13:56,500 --> 01:14:14,580 Okay, all right. 873 01:14:14,580 --> 01:14:30,140 Okay, all right. 874 01:14:30,140 --> 01:14:45,700 Okay, all right. 875 01:14:45,700 --> 01:15:02,340 Okay, all right. 876 01:15:02,340 --> 01:15:22,660 Okay, all right. 877 01:15:22,660 --> 01:15:33,300 Okay, all right. 878 01:15:33,300 --> 01:15:54,820 Okay, all right. 879 01:15:54,820 --> 01:16:10,260 Okay, all right. 880 01:16:10,260 --> 01:16:22,340 Okay, all right. 881 01:16:22,340 --> 01:16:35,860 Okay, all right. 882 01:16:35,860 --> 01:16:53,140 Okay, all right. 883 01:16:53,140 --> 01:17:06,660 Okay, all right. 884 01:17:06,660 --> 01:17:23,500 Okay, all right. 885 01:17:23,500 --> 01:17:37,020 Okay, all right. 886 01:17:37,020 --> 01:17:57,900 Okay, all right. 887 01:17:57,900 --> 01:18:11,420 Okay, all right. 888 01:18:11,420 --> 01:18:23,420 Okay, all right. 889 01:18:23,420 --> 01:18:36,940 Okay, all right. 890 01:18:36,940 --> 01:18:54,460 Okay, all right. 891 01:18:54,460 --> 01:19:07,980 Okay, all right. 892 01:19:07,980 --> 01:19:25,500 Okay, all right. 893 01:19:25,500 --> 01:19:39,020 Okay, all right. 894 01:19:39,020 --> 01:19:56,540 Okay, all right. 895 01:19:56,540 --> 01:20:10,060 Okay, all right. 896 01:20:10,060 --> 01:20:29,580 Okay, all right. 897 01:20:29,580 --> 01:20:49,100 Okay, all right. 898 01:20:49,100 --> 01:21:03,820 Okay, all right. 899 01:21:03,820 --> 01:21:17,820 Okay, all right. 900 01:21:17,820 --> 01:21:31,340 Okay, all right. 901 01:21:31,340 --> 01:21:48,860 Okay, all right. 902 01:21:48,860 --> 01:22:02,380 Okay, all right. 903 01:22:02,380 --> 01:22:19,900 Okay, all right. 904 01:22:19,900 --> 01:22:36,380 Okay, all right. 905 01:22:36,380 --> 01:22:53,900 Okay, all right. 906 01:22:53,900 --> 01:23:10,380 Okay, all right. 907 01:23:10,380 --> 01:23:26,860 Okay, all right. 908 01:23:26,860 --> 01:23:42,380 Okay, all right. 909 01:23:42,380 --> 01:23:57,900 Okay, all right. 910 01:23:57,900 --> 01:24:14,380 Okay, all right. 911 01:24:14,380 --> 01:24:28,940 Okay, all right. 912 01:24:28,940 --> 01:24:45,420 Okay, all right. 913 01:24:45,420 --> 01:24:59,900 Okay, all right. 914 01:24:59,900 --> 01:25:16,380 Okay, all right. 915 01:25:16,380 --> 01:25:30,860 Okay, all right. 916 01:25:30,860 --> 01:25:38,860 Okay, all right. 917 01:25:38,860 --> 01:25:49,340 Okay, all right. 918 01:25:49,340 --> 01:26:03,340 Okay, all right. 919 01:26:03,340 --> 01:26:09,820 Okay, all right. 920 01:26:09,820 --> 01:26:17,820 Okay, all right. 921 01:26:17,820 --> 01:26:34,300 Okay, all right. 922 01:26:34,300 --> 01:26:48,780 Okay, all right. 923 01:26:48,780 --> 01:27:05,260 Okay, all right. 924 01:27:05,260 --> 01:27:21,740 Okay, all right. 925 01:27:21,740 --> 01:27:36,220 Okay, all right. 926 01:27:36,220 --> 01:27:44,220 Okay, all right. 927 01:27:44,220 --> 01:27:54,700 Okay, all right. 928 01:27:54,700 --> 01:28:15,180 Okay, all right. 929 01:28:15,180 --> 01:28:31,660 Okay, all right. 930 01:28:31,660 --> 01:28:46,140 Okay, all right. 931 01:28:46,140 --> 01:29:02,620 Okay, all right. 932 01:29:02,620 --> 01:29:17,100 Okay, all right.