ISKCON Chapter 11 Update - June 2004
Posted June 22, 2004
Now that the Reorganization Plan has been filed with the court, the focus is to move the Plan toward confirmation. During this period, adjustments may be made to meet legitimate concerns over many aspects of the Plan, including classification and treatment of claims. The overall goal is to fairly and equitably compensate all legitimate claimants in a balanced and timely manner.
It deserves repeating that there are three important procedural considerations to keep in mind about this complex process. First, the Plan will likely be adjusted as feedback from the claimants, counsel and the court is obtained. Second, the Plan must be voted on by the claimants, who will be in various voting classes, before it is approved. And, third, an independent determination as to the legality, adequacy and fairness of the Plan will ultimately be made by the Court.
Meanwhile, substantial progress has been made in complex insurance litigation now taking place in U.S. District Court. Legal victories were recently achieved when the court ruled that two insurance carriers have a duty to defend ISKCON's legal interests. These significant rulings mean that many of ISKCON's past legal defense bills must now be reimbursed, and certain future defense costs will now be covered by insurance. Parallel litigation is ongoing against other carriers on this issue, all of which will eventually lead to a determination on whether, and to what extent, additional insurance proceeds must be made available for the Youth Compensation Fund.
From this point, it will yet take some months before a final Plan is approved by the courts after which initial disbursements would then follow. Announcements will be made when voting instructions and information requests are mailed to the claimants. Over the ensuing months, anyone who filed a claim needs to keep an eye out for announcements, and closely watch the mail for official correspondence from the lawyers and the courts.
Meanwhile, should any Gurukuli change their mailing address from that
reported on the original claim form, the courts and the lawyers must be
notified. Information on how to file a change of address notice can be found
on http://www.harekrishnaclaims.com/ or