In re Raejean S. Bonham dba World Plus
Bankruptcy No. F95-00897
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The Trustee has reached a tentative settlement with Delta Air Lines. The proposed settlement is subject to Bankruptcy Court approval. Notice of the proposed settlement was mailed out to all of the creditors on March 11, 1997. Copies of the complete settlement agreement are available for inspection at the Law Offices of Guess & Rudd and at Bankruptcy Court. Copies of the the settlement agreement were also mailed to counsel.
This is a summary of the terms of the settlement. Please review the entire text for a complete explanation. When Rogers & Hardin, DeltaÕs counsel, furnishes the disk file, the full settlement will be posted here.
PLEASE REMEMBER THIS SETTLEMENT WILL NOT BE EFFECTIVE UNLESS AND UNTIL IT IS APPROVED BY THE U.S. BANKRUPTCY COURT.
Payments to Delta
Ten Percent (10%) of the first $1,000,000 distributed to general unsecured creditors.
Twenty Percent (20%) of the next $1,000,000 distributed to general unsecured creditors.
Ten Percent (10%) of all funds distributed to general unsecured creditors above $2,000,000 and up to and including $9,000,000.
Twenty Percent (20%) of all funds distributed to general unsecured creditors above $9,000,000 and up to an including $14,000,000.
DeltaÕs claim is capped at $2,000,000. Delta cannot recover more than $2,000,000 from the bankruptcy estate.
Other issues
DeltaÕs claim for Òmore than $10,000,000 is otherwise disallowed.
Delta will not be paid any monies by the bankruptcy estate unless and until other general unsecured creditors are paid.
Delta is not guaranteed to receive any monies.
Delta will be free to proceed in the United States District Court for the Northern District of Georgia at Atlanta. The trustee will not appear or challenge its claim.
Any amounts Delta recovers in excess of $2,000,000 in that action will be subordinated to other claims of general unsecured creditors.
Delta cannot recover any subordinated portion of its judgment from the assets of the estate, as defined at 11 U.S.C. Section 541. (Delta has already filed an adversary action to have its claim against Raejean Bonham deemed nondischargeable.)
The trustee will dismiss his pending motions in U.S. Bankruptcy Court against Delta.
Delta and the trustee will sign mutual releases.
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