Medley Management Inc. (MDLM)

[56Chevy]

Court Doc #0325 page 32 and again on page 53 addresses the SEC Claim

Page 32

As of July 5, 2021, creditors (other than intercompany claims) had filed or scheduled proofs of claim aggregating $133,286,927.05, including $1,680.67 of Priority Claims,$125,506,108.33 of Notes Claims, and $7,779,138.05 of General Unsecured Claims.14 Additionally, on May 6, 2021, the SEC also filed a proof of claim asserting a contingent claim in an unliquidated amount for “an undetermined claim for penalties, disgorgement, and prejudgment interest arising from possible violations of the federal securities laws.”15” [Claim Register No. 11] (the “SEC Claim”) attached hereto as Exhibit F. Further, in its proof of claim, the SEC stated that, it “has been conducting an investigation into certain pre-bankruptcy transactions involving the [D]ebtor.”The SEC continues to acknowledge that the SEC Claim is a contingent and unliquidated claim,“for penalties and disgorgement.”¶ 1 [DocketNo. 304]. While the SEC Claim does not provide information about the potential scope or amount of the claim, the SEC Claim, if allowed in any material amount, may reduce recoveries to Holders of Claims in Class 3 and Class 4 to the extent the claim is not Disallowed or subordinated as a penalty or otherwise. The SEC may amend the SEC Claim to provide further information and the Plan Proponents, and the Liquidating Trustee, as applicable, reserve all rights to object to the priority and allowance of the SEC Claim, including to seek its subordination.The Governmental Unit Bar Date is September 3, 2021 at 5:00 p.m. (prevailing Eastern Time).

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Page 53

G. Allowance of Claims May Substantially Dilute the Recovery to Holders of Claims
under the Plan.

There can be no assurance that the estimated Claim amounts set forth in the Plan are correct, and the actual Allowed amounts of Claims may differ from the estimates. The estimated amounts are based on certain assumptions with respect to a variety of factors, including with respect to the Disputed Administrative Claims, Disputed Priority Tax Claims, Disputed Other Priority Claims, and Disputed Secured Claims. Should these underlying assumptions prove incorrect, the actual Allowed amounts of Claims may vary from those estimated herein, thereby materially reducing the recovery to the Holders of Claims under the Plan.

Moreover, any Allowed Claim of the SEC may reduce Distributions to Holders of Claims in Class 3 and Class 4. The Plan Proponents will continue to examine the SEC Claim to determine whether it is appropriate to object to or move to subordinate such claim, and nothing herein shall affect or impair the rights of the Plan Proponents or the Liquidating Trustee, as applicable, to litigate the allowance, priority, and subordination of the SEC Claim.

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Source:
https://www.kccllc.net/medley/document/list/5510

*I can understand why the SEC doesn't reveal the $$ amount of any "Causes of Action" they may take in for obvious reasons ..but to not even give a hint where or to whom those funds ultimately end up is a touch nerve racking!