Impending deadline for Madoff bankruptcy claimants
11/02/2014
London-based illiquid markets specialist Agora Private Markets (APM) reports that it has recently seen an increase in enquiries made by Madoff feeder fund victims. This increase could be due to the US Department of Justice’s (DoJ) announcement in November 2013 concerning the Madoff Victims Fund (MVF). The DoJ decision to launch a new recovery pool is important for all Madoff victims as the MVF has a filling deadline of April 30th 2014.
At present, many investors remain uncertain regarding the status of their claims or have not yet decided to file a claim. APM can offer investors a secondary market exit with or without a MVF claim, or alternatively introduce them to an independent advisor. This advisor is able to help undecided or inexperienced clients to understand the obligations and rights concerning the MVF and help file the claims, given the urgency and complexity of the filling.
APM believes it is key for most investors (depending their circumstances) to file a claim with the MVF for two reasons; firstly, should they wish to eventually receive a recovery from the MVF, and secondly, should they wish to sell their interest to buyers via the secondary market. APM assumes that investors without a proof of claim from the MVF could ultimately recover substantially less than investors with a claim. This also has implications for the secondary market trading of Madoff feeder funds as pricing will most likely be lower for sellers without a proof of claim.
Alex Wolters, founding partner at the company says: “We can only urge every investor to contact an expert for help. Missing this deadline may result in a much lower recovery value. Moreover, even investors who thought they might not have any sort of recovery value due to the fact that the feeder fund they invested in was seen as a ‘net winner’, could now be in line for a pay-out via the MVF.”
Agora Private Markets is a fully independent illiquid markets specialist. The core mandate is securing liquidity for clients invested in illiquid assets. APM's role is simple; to find the most competitive bids available for the company's clients to maximize the value of their holdings. With experience across the illiquid and distressed market, APM has a history of trading a diverse range of claims, such as Madoff, Lehman Brothers and more recently MF Global. APM can evaluate prices from a worldwide network of professional buyers to maximize value while working closely with their customers. They can ensure that the process is managed confidentially from start to finish, until funds are received and all administration, paperwork and the transfer of ownership is completed.