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US Trustee: No objection to issuance of Fund benefits
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Posted on May 23 2012
By Ferdie de la Torre
Reporter
Reporter
The U.S. Trustee for the District of the CNMI does not oppose the NMI Retirement Fund’s request to continue to provide benefits to its beneficiaries during the pendency of the Chapter 11 bankruptcy case.
Assistant U.S. Trustee Curtis Ching said they will not object to the Fund’s motion provided that there will be limitations.
The Fund had asked for court authority to continue paying out certain benefits to beneficiaries, proposing a rate of payments that is between 42 percent and 100 percent of current benefits.
In the U.S. Trustee’s response, Ching said the authorization should be limited to two months, without prejudice to the Fund seeking approval for continued payments.
Ching said the authorization should be at a rate that would allow the Fund to sustain itself.
Based on the Fund’s representations, he said this would require a substantial reduction in the current payment levels.
Ching said post-petition payments should be recorded and credited to those beneficiaries receiving payments.
“Any confirmed plan should provide corresponding benefits to beneficiaries who did not receive such post-petition payments,” he added.
U.S. District Court for the NMI Bankruptcy Division designated judge Robert J. Faris earlier granted the Fund’s request to immediately conduct a hearing on its several motions, including the motion for continued payment.
The hearing on the Fund’s several motions will start on June 1, 2012, at 9:30am.
