Recoveries & Settlement Agreements Reported as of February 07, 2014:
All amounts approximate
Third Pro Rata Interim Distribution (4.721%):
The third pro rata interim distribution from the Bernard L. Madoff Investment Securities LLC (BLMIS) Customer Fund to eligible customers commenced March 29, 2013. As of February 7, 2014, approximately $523.0 million has been distributed to BLMIS accounts with allowed claims in the third distribution, representing approximately 4.721 percent of the allowed claim amount of each individual account, unless the claim is fully satisfied. After the third pro rata interim distribution, 1,109 accounts with allowed claims remain partially satisfied and entitled to participate in future interim distributions.
Second Pro Rata Interim Distribution (33.556%):
The second pro rata interim distribution from the Bernard L. Madoff Investment Securities LLC (BLMIS) Customer Fund to eligible BLMIS customers commenced September 19, 2012. To date, approximately $3.746 billion has been distributed to BLMIS accounts with allowed claims through the second pro rata interim distribution, representing approximately 33.556 percent of the allowed claim amount of each individual account, unless the claim is fully satisfied.
First Pro Rata Interim Distribution (4.602%):
As of February 7, 2014, approximately $516.2 million has been returned to BLMIS customers with allowed claims via the first pro rata interim distribution, which commenced on October 5, 2011, representing approximately 4.602 percent of the allowed claim amount of each individual account, unless the claim is fully satisfied.
Amount of SIPC advances reimbursed to SIPC on fully satisfied accounts - $102.81 Million
SIPC is authorized to administer funds to customers of failed brokerage firms as an advance against recovered assets. In this case, SIPC to date has advanced to the court-appointed SIPA Trustee approximately $811.7 million in funds to distribute to BLMIS customers with allowed claims.
According to the provisions of SIPA, SIPC is reimbursed for its advances to customers once each respective customer claim is fully satisfied. As of the third pro rata interim distribution in the BLMIS liquidation proceeding, SIPC received $102.81 million in reimbursement from the BLMIS Customer Fund for advances paid on fully satisfied, leaving $708.9 million in SIPC advances outstanding.
One hundred percent of the SIPA Trustee's recoveries will be allocated to the BLMIS Customer Fund for distribution to BLMIS customers with allowed claims. The reimbursements to SIPC are for the cash advances to BLMIS customers with allowed claims, which are made when the BLMIS customer claim is first allowed.
Additional unresolved matters remain that require determination, including “time-based damages,” or payments based on the time elapsed while customer funds were deposited with BLMIS. All of these matters will be heard and determined by the courts and, until resolved, require reserves. In addition, 155 claims have been “deemed determined pending litigation” and the SIPA Trustee must establish sufficient reserves to ensure that he would be able to make all pro rata distributions to date to all potentially eligible claimants, whether or not their claims are allowed at the time of distribution.
Required reserve for deemed determined claims: Approximately $2.668 billion
Required 3-percent reserve ordered by Bankruptcy Court for issue of time-based damages: Approximately $1.375 billion
Other reserves, including reserve for deferred payments and unallocated funds: Approximately $519.8 million
Portions of recoveries and settlement agreements have not yet been collected, due to appeals, the timing of payments of certain settlement monies and other issues. Therefore, these funds cannot be either allocated to the Customer Fund or distributed to BLMIS customers with allowed claims until these issues are resolved. As of February 7, 2014, approximately $339.7 million relating to settlement reserves and other matters must be held in reserve.