Please read the following update from Equitatus (with one caveat -Tracy Green from Wendel, Rosen Black & Dean has a history with REL investors – a blast from the past, if you will):
The bankruptcy court this afternoon approved Walter’s modification of notice requirement.
Everyone will get a one- time notification in response to which they can either opt (in) to receive all notices or not (opt out).
There will also possibly be a web site where the Creditors Committee will post information about the case.
A new attorney on the scene for Dr. Fredric Mendes who had an investment in RE Loan addressed the court on the notice issue. He suggested that not everyone had access to the internet or was tech savvy and the court and creditors committee should protect the claimants’ basic contitutional right to notice.
The meeting of creditors and examination of Walter is still scheduled for June 6, 2011 at 11a.m.see the notice on my blog.
This is going to be the most interesting and dramatic moment in the case. Walter will wilt under the relentless questions of investors and attorney alike.
A most interesting discussion took place in the hall after the hearing between the US Trustee, the newly proposed attorney for the creditors committee, Tracy Green from Wendel,Rosen,and Black &Dean of Oakland. There were about 15 investors present.
The hot topic of discussion was about the composition of the creditor committee. The US Trustee denied getting request to serve on the committee from several investors who said they had sent her a request. The US Trustee seemed to question the status of the REL and MF08 investors to be on the committee. Reason: They are not really direct creditors of Walter as an individual, and their individual claims were not large enough.
She was quickly corrected on both these points several investors but seemed unmoved to appoint REL or MF08 investors to the committee. She denied gettting any requests form REL or MFO8 investors to be on the committee. (See the form at the top of this string. Send it in to the US Trustee)
Attorney Brown then explained to her that Walters’s top 20 was a fraud, citing the history of reinvesting these out of state investors in RE Loans through Walter’s dummy fund. The US Trustee was unaware of this. Mr. Brown also asked her if she was aware of the FBI investigation or had talked to the FBI. She knew nothing about this.
Several investors offered to meet with her and bring her up to speed on the Walter. She declined. The general impression that one is left with is that she is not a warm and fuzzy protector of the individual investor. She seems be be above it all or she doing a job she doesn’t really care about.
Ms. Green on the other hand gives the impression is that she is intelligent and will work to protect all the creditors. She seemed more inclined to listen to the investors and was interested in all the information people were giving her. She said at one point that she was open to having REL and MF08 investors added to the committee and seemed shocked that individual investors standing in the hall had larger dollar claims than those already appointed to the committee.
If you miss the June 6 examination of Walter you will be sorry. It may be the only satisfaction you get in this case.