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Creditors committee agrees to continued payment of benefits
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Posted on May 27 2012
The Official Committee of Unsecured Creditors has agreed with the NMI Retirement Fund’s court request to be allowed to keep providing benefits to its beneficiaries while its Chapter 11 bankruptcy case remains pending.
The committee, through counsel Don Jeffrey Gelber, said that payments to beneficiaries should start on the June 30, 2012, payment and continue for eight semi-monthly pay periods (a period of four months).
Gelber said a beneficiary currently receiving $250 or less per semi-monthly period ($6,000 or less on an annual basis) will continue to receive the same payment.
A beneficiary currently receiving more than $250 per semi-pay period (more than $6,000 on an annual basis) will receive, for each semi-monthly period, the greater of (1) 75 percent of the payment that would have been made had the Chapter 11 case not been commenced, or (2) $250, Gelber said.
He said the Fund should continue to pay life and health insurance premiums at the current unreduced rate.
The Fund’s request to be allowed to continue paying out benefits to beneficiaries had proposed a rate of payments that is between 42 percent and 100 percent of current benefits.
Assistant U.S. Trustee Curtis Ching said they will not object to the Fund’s motion provided that there will be limitations. 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.
