What is META Advisors LLC’s (“META”) connection to the debtors/the bankruptcy case?
META is selected by the debtor(s), the creditors’ committee and/or their respective advisors, with the approval of the bankruptcy court, to implement the terms of a confirmed plan of liquidation or reorganization for the debtor(s). Depending on the terms of the plan, META may serve as a liquidating trustee, plan administrator, distribution agent or other post-confirmation responsible person for the debtor(s). With the assistance of its professionals, META typically is engaged to review and reconcile claims, monetize residual assets including litigation/causes of action that belonged to the debtor(s)’s bankruptcy estate(s), and make distributions to creditors, among other things. Although META administers many aspects of a debtor’s bankruptcy estate, META is not affiliated with the debtor, nor is it managed or controlled by the debtor’s management. META is an independent entity whose duties are prescribed in the plan and related documents (often including a liquidating trust agreement) approved by the bankruptcy court in the debtor(s)’s bankruptcy case(s) (collectively, “Plan Documents”).
When will I receive a distribution on my claim?
META makes distributions to creditors in accordance with the terms and conditions of the Plan Documents, which are specific to each bankruptcy case. If a claims agent has been retained in a particular case, the Plan Documents are typically available at no charge on the claims agent’s web site. Alternatively, Plan Documents are available from the federal judiciary on https://www.pacer.gov (a user account must be established and fees may apply). In general, distributions are made on a periodic basis after (i) all available assets are liquidated; (ii) claims are reviewed, reconciled and not subject to further objection or dispute; and (iii) a claimant has provided a duly completed, executed and dated tax identification form.
Where will my distribution be sent when distributions are made?
Distributions are made according to the Plan Documents specific to each case (see above). Distributions are made to the holders of allowed claims as of the “record date” established for the case in the Plan Documents. Most Plan Documents provide that META, as distribution agent, is not required to recognize any transfer of ownership of a claim after the record date, except to the extent such transfer occurs by operation of law. Generally, this means that distributions made on account of filed proofs of claim are sent to the creditor and address specified on the proof of claim, and distributions on account of liquidated, non-contingent, undisputed scheduled liabilities for which no proof of claim is filed are sent to the creditor and address listed on the debtor’s bankruptcy schedules. If you want META to send your distribution to another address, you must file a notice of change of address with the bankruptcy court and submit a change of address request to META here (include link).
I understand that a distribution recently was made in a case in which I am a creditor. I did not receive a distribution. Why not?
There are many reasons why you may not have received a distribution. The most common reasons are:
- distributions were made on different types of claims than the type of claim you hold against the debtor(s);
- your claim has not yet been fully reviewed or reconciled, or is subject to a pending or future objection (META is not required to make a distribution on account of any claim until such claim is allowed);
- you did not provide a duly completed and executed tax identification form or your form was not submitted timely;
- a distribution check was mailed to the address listed on your proof of claim or in the debtor(s)’s bankruptcy schedules, that address is outdated, and you have not updated your address with the bankruptcy court and META (see above); or
- based on the aggregate amount of cash META distributed, the pro rata percentage distributable to each creditor and the amount of your claim, your distribution was less than the minimum distribution META is required to make under the Plan Documents (most Plan Documents do not require META to make a distribution to a creditor if the amount is less than a minimum amount set forth in the plan (often $25.00 or $50.00)).
Why must I provide a tax form?
Tax forms are required so that META Advisors LLC can comply with applicable tax reporting requirements under the Plan Documents. Most Plan Documents provide that a claimant’s distribution may be conditioned on providing valid and compliant tax forms within a specific time period. Most Plan Documents also provide that the failure to provide such documents timely can result in the forfeiture of present and future distributions. It is, therefore, very important to submit your tax form to META by the deadline indicated in the correspondence you received from META on this topic.
Why did META reject my tax form?
There are many reasons why a tax form may be non-compliant, and they are too numerous to summarize all of them here. Among the most common reasons why a tax form is rejected are:
- the IRS form was outdated;
- the wrong tax form was provided (e.g., a foreign entity provided a W-9 which is for individuals that are U.S. citizens or businesses incorporated in the U.S.);
- the form was not signed or was not dated;
- the form contained incomplete information (all sections of the relevant form must be completed);
- the form listed a taxpayer name that did not match the name of any creditor in the bankruptcy case; and
- a taxpayer identification number (TIN) was not provided.