- Oct 31: BILL HEARD ENTERPRISES INC. - FINAL DISTRIBUTIONS
- Oct 29: Order Approving Settlement and Release
- Jan 19: WARN DISTRIBUTION BASED ON PAYROLL
- Jan 13: FUTURE DISTRIBUTIONS
- Jan 13: TAX MATTERS - WARN DISTRIBUTION AND OTHERS
- Jan 12: WARN ADDRESS CHANGES - CHECKS VOID IN 90 DAYS
- Jan 06: CLASS 2 WARN ACT DISTRIBUTION
- Jun 14: Landmark Chevrolet Sale Proceeds Appeal
- Sep 10: DISTRIBUTION UPDATE
- Jun 30: Unpaid Wages - Class 1
- Jun 23: Class 1 Distribution Address Deadline
- Jun 04: Distribution Update
- Apr 02: EMPLOYEE WAGES AND WARN ACT CLAIMS
- Apr 01: Secured Creditor Update
- Feb 04: Claims Update
- Feb 03: General Update
- Nov 11: Employee Wage Claim Objections
- Nov 04: Omnibus Hearing Held This Morning
- Oct 27: Bill Heard Plan of Liquidation Operational
October 31, 2013
Final distribution checks for the 2700 allowed Class 2 WARN Act claimholders were prepared yesterday and turned over to our mailing service. I anticipate those checks will be mailed today. No 1099’s will be sent for these Class 2 dividends as none exceed $600.
The final Class 5 priority tax claim dividends were mailed yesterday.
At this time all litigation and other anticipated recoveries have been completed. A final decree closing this case is anticipated before year end.
October 29, 2012
You likely received a lengthy letter from the Bankruptcy Court recently that has created considerable confusion for many former employees of Bill Heard Enterprises and its vendors.
First of all, the letter is simply a notice of the Bankruptcy Court’s approval of a settlement reached regarding litigation I brought in 2010 to recover funds from the insurance carrier of Bill Heard Enterprises Inc.‘s Directors & Officer’s Policy. The BHE Estate will receive $644,000 as a result of this settlement.
More importantly, the Bankruptcy Court erred in sending this notice to the entire creditor’s list. There is no specific action required on the part of BHE creditors as a result of this settlement.
Again, the correspondence you received is notice of settlement of a lawsuit and does not require you to act upon it.
January 19, 2012
I have had many questions and emails regarding why one person’s WARN distribution is more or less than that of another employee’s. The amount of the distribution is based on your average wages or salary earned per day, and the maximum claim is 60 days of earnings. It is not a flat amount for each eligible former employee. So, the amount will be effected by your normal earnings level, whether you’re part-time or full-time, how long you worked for Bill Heard Chevrolet, and the number of days, if any, you may have worked after your dealership closed. Each day worked after the dealership closed reduces your WARN claim by one day.
Also, there is a statutory maximum that can be paid for priority wages and benefits, so the amount of your Class 1 claim for unpaid wages or salary you received also impacts what you are eligible to receive in Priority Class 2 WARN claims. So there are a lot of variables. The amount of your claim was prepared by the WARN attorneys from information provided by the Debtor and its consultants.
January 13, 2012
Understandably, many holders of Allowed Class 2 WARN claims have inquired regarding the outlook for further distributions. I can make no commitments in that regard as I mentioned in my January 6, 2012 post. We have reserves against certain tax claims that may free up in part, and one lawsuit still remains in progress. My best estimate at this time is that if another distribution for Class 2 can be made, it will likely be smaller than the distribution just mailed out.
January 13, 2012
I have received inquiries about the tax reporting of the WARN distribution just mailed this week. First, this WARN Class 2 distribution will be reported on a FORM 1099-MISC, not a W-2 like you would receive for wages. But, since the WARN distribution was not mailed until January 9, 2012, it has no impact on your 2011 taxes. So you will not be receiving anything from the bankruptcy estate that will effect your 2011 taxes since there were no distributions of any kind in 2011. You will, however, receive a 1099-MISC in January 2013 for this and any other distributions that occur in 2012.
January 12, 2012
Addresses: If you’ve not received your Class 2 WARN distribution check mailed on January 9th by Tuesday, January 17, 2012 (the 16th is MLK Holiday), AND you have moved since 2009, the problem may be that we do not have your current address. The BHE Plan of Liquidation tasks the WARN ACT law firms with tracking WARN claimholder addresses. Please inform Alex Page, Legal Assistant at The Gardner Firm, one of the WARN Act Settlement Class law firms, who has been designated as the coordinator of address issues. His contact information is:
Alex Page, Legal Assistant
The Gardner Firm, P.C.
210 S. Washington Ave.
Post Office Drawer 3103
Mobile, AL 36652
Alex will inform the Trustee and others of these changes.
CHECKS VOID AFTER APRIL 13, 2012: Address issues are important to resolve because the Plan states that WARN Act Claim Holders have three months to present their distribution check to the bank for payment. After that time, your rights to this distribution will be forfeited unless you have communicated your correct address to Alex Page by that time.
January 06, 2012
Funds are available at this time for distribution to Holders of Allowed Class 2 Claims and other junior claims classes total $2.3 million. The First Amended Plan of Liquidation (“The Plan”) sets forth how these available funds will be distributed.
The Plan states that the first 32.5% of available funds, or $747,500, will be made available to Holders of Allowed Class 3 Claims, which are Allowed Priority Benefit Claims. [III.C.2(a)]
The Plan states that the balance, $1,552,500 will be distributed as follows:
1. $10,000.00 each to Adam Kettel and Edward Kratzel; [III.C.2(b)]
2. $510,833.34, or one-third of the remaining balance to the WARN Act Settlement Class counsels [III.C.2©]; and,
3. $1,021,666.66 will be distributed proportionately to all Holders of Allowed Class 2 Claims, including Mr. Kettel and Mr. Kratzel. [III.C.2©].
There are over 2,700 Claim Holders in this Settlement Class. The total of Allowed Class 2 WARN Act claims is $15,010,300. As a result, this Distribution represents 10.21% of your Allowed Claim. Your portion of that after paying 1/3 to your attorneys is approximately 6.81%.
The Class 2 WARN Act Priority Claims distribution has been sent to the mail center and will be placed in the U.S. mail with first class postage on or about Monday, January 9, 2012.
Note: If you have IRS levies against you then the IRS will receive this distribution. If you have assigned your claim to a third party for which we have received notice, your distribution will be paid to that 3rd party. Future distributions, if any, cannot be forcasted at this time.
June 14, 2011
This issue, as discussed in previous posts, relates to the Bankruptcy Court’s decision in November 2009 that one of the Bill Heard debtors, Twentieth Century Land Corporation, was entitled to avoid HSBC Bank USA’s mortgage and lien on the Landmark Chevrolet real estate. This ruling would allow the Trustee, on behalf of Twentieth Century, to retain the $2.2 million net proceeds of the 2010 Landmark Chevrolet real estate sale auction. In November 2009, HSBC appealed Judge Caddell’s decision.
Recently, Judge Sharon Lovelace Blackburn, Chief Judge of the U.S. District Court, Northern District of Alabama, ruled that the Bankruptcy Court was in error and reversed Judge Caddell’s ruling. Judge Blackburn remanded the case back to the Bankruptcy Court for “further proceedings not inconsistent” with her ruling. Without further successful appeal on my part, these funds will not be available to the Estate for distribution or other purposes.
September 10, 2010
Class 2 WARN Claims
Significant questions remain as to the ownership of funds held by the Liquidating Trustee, such as over $2.2 million of proceeds of the Landmark real estate sale. It is unlikely that the Landmark dispute will be resolved in the next few months.
Separately, a number of tax claims asserting administrative priority or secured status have been filed.
Once the amount and priority of the asserted claims is more certain, we will be able to give a more definitive time line for distributions to holders of Allowed Class 2 WARN Act Claims to begin.
June 30, 2010
Allowed Class 1 claims for unpaid wages were placed in the mail today!