Guest Post: Dixon Collins – REJECT THE PLAN

Dear Fellow Investor,

I have received numerous telephone calls concerning the proposed
Chapter 11 reorganization plan for R.E. Loans.  Most callers want to
know how I intend to vote on the plan.

I have not received a ballot but when I do I intend to reject the plan. Here
are some things that I have considered.  You can make up your own
mind.

First, page 4 of Exhibit B in your ballot packet of documents states
that I received a distribution of $152,297.11 after the Exchange
Agreement and that I would be subject to claw back if the plan fails.
Exhibit B is totally false.  I did not receive one single penny from
R.E. Loans after the Exchange Agreement or at any other time.  I have
lost $497,991.46, my entire life savings.  If the plan passes, unlike
some other investors, I will not benefit from the compromise on claw
back.

Second, please read Robert Brower’s analysis of Exhibit B on the
Equitatus blog.  You can download it and read it at your leisure.  I
have read his post and I agree that Exhibit B is not accurate, not
reliable, and very misleading.

Equitatus Blog: http://equitatus.wordpress.com/

Third, please read Robert Brower’s post on the Bar-K blog about the
Wells Fargo lawsuit and how it would be “a go” if the plan is rejected
and the case goes into Chapter 7.

Robert Brower Comment: https://barkinvestors.wordpress.com/2012/05/21/no-means-no/comment-page-1/#comment-2904

Fourth, although I am not a lawyer, in my judgment the proposed plan
of reorganization does not provide the investors treatment consistent
with their legal entitlement.  I further believe that rejection of the
proposed plan would most likely lead to a result more favorable to the
investors as a whole.

Finally, those of you who know me know that I have always been a
champion of all the investors, not a select few.

I am not a member of or a friend of anyone in the Ng family.  When the
Department of Corporations tried its case against Barney Ng, I
testified for the Department and against Barney Ng.

To be 100% clear, I intend to Reject The Plan.

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4 thoughts on “Guest Post: Dixon Collins – REJECT THE PLAN

  1. Many REL investors are older and took IRA RMD or interest payments to live on. Many have limited assets outside of their REL investment. I am in this group.

    If the Plan fails, I have heard that we (those who took distributions) will be pursued by the Chapter 7 liquidating trustee for 100% repayment of money we took after 11/2007. Is this true? I do not have it! (I did not touch my REL principal; there is still plenty of my money “on the books”). What will happen to people like me if the plan is not approved? I am frightened.

    I understand how you feel about people who got some money out. It really burns me up to see quite a few folks listed in Exhibit B who took out their ENTIRE investment after 11/2007. It looks like one guy got $11 million plus!

  2. Please read the post at

    http://equitatus.wordpress.com/2012/05/20/all-animals-are-equal-but-some-animals-are-more-equal-than-others/

    It sets forth who the small number of investors,308, got disbursement between 100K$ and 1 million + $ .

    16 people got disbursements of over a million dollars. These are the people that the Trustee might sue, especially because some of them knew that REL was ill liquid and were given large sums with a wink and a nod. One investor got an exchange of one of your properties for his 3+ million stake in REL.
    These are the people the Trustee will go after. Not you.

    If you look at what Picard did as Trustee in the Madoff case, almost all of the people he went after had gotten millions. He mostly went after people who withdrew more than they invested.

    http://en.wikipedia.org/wiki/Recovery_of_funds from_theMadoff_investment_scandal

    It wouldn’t make economic sense to go after someone who got a small distribution, it would cost more in attorney’s fees than what would be recovered.

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