Second distribution coming soon

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Second distribution coming soon

Postby remberger » Fri Oct 25, 2019 10:39 am

Hello everyone,

I have been in touch with Avaya's attorneys regarding a second (and presumably final) distribution.

Here is their reply:

Mr. Emberger --

I am indeed still on the account.

Thank you for checking, you are very prescient with your timing. We are working with the Company to finalize the distributions and expect to be sending checks out within the next few weeks.

The anticipated payout actually comes in a bit under 1%, as various parties have cashed their checks, settlements have been reached, and the court has resolved open claims.

Thank you very much --

--------------

That means for every $100 that Avaya valued your supplemental pension at you will get "a bit under" $1.00 (e.g. If your supplemental pension was valued by Avaya at $100,000 you will get "a bit under" $1,000).

Keep your eye out for a check from an obscure bank. It may be small but it will be real.

Bob Emberger
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Re: Second distribution coming soon

Postby jbarbetta » Thu Nov 07, 2019 1:28 pm

Received a letter from Prime Clerk today stating the “Second and Final Distribution” checks should be received by claimants no later than November 15, 2019. If not received by then you need to call Prime Clerk with your Claim #. Checks must be cashed within 90 days of issue date.
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Re: Second distribution coming soon

Postby janetequigley » Thu Nov 07, 2019 2:28 pm

I received the same letter mentioned that second check is in the mail and should be here no later than 11/15/19.

Janet
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Re: Second distribution coming soon

Postby ahretirement » Fri Nov 08, 2019 12:33 pm

Bob,

I received my final distribution check today and it is significantly less than the .9% to 1% of my claim amount that I was expecting. In fact, it appears to be only about .3%.

Just like the first distribution, only the net amount appears on the check. I assume that federal taxes were withheld; but, they don't identify the net amount of the distribution or the taxes withheld.

I tried contacting Evolve Bank who issued the check; but, they are dumber than a sack of hammers. Do you have a contact at Avaya or their attorneys that might be able to provide detail on the taxes withheld?

John Lawrence
Retired 2001
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Re: Second distribution coming soon

Postby jbarbetta » Fri Nov 08, 2019 1:14 pm

Received my 2nd distribution check today & like Mr. Lawrence’s check my check was about .3% of my settled claim amount.
Also no stated distribution amount or taxes withheld on the lower portion of the “Detach and Retain For Your Records.”
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Re: Second distribution coming soon

Postby jbarbetta » Fri Nov 08, 2019 1:36 pm

Sorry, I misstated the % payout in my previous post.
It was a whopping.003% of my settlement amount!
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Re: Second distribution coming soon

Postby remberger » Fri Nov 08, 2019 3:37 pm

I have reached out to the Avaya attorneys for the following information:

(1) How much of the $57,000,000 was remaining after the first distribution that became available for the second distribution.
(2) What % of the approved claim is the second distribution
(3) What % of the dollars paid in the second distribution was held back for Federal Income Tax
(4) Last time, retirees living in some states had state income tax withheld, while others in different states did not. Is this the case again?
(5) For individuals who would like to find out their gross payment, Federal Tax Withheld and State Tax withheld, who can they contact.

I will post their reply when I receive it.

Bob Emberger
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Re: Second distribution coming soon

Postby lucycarlson105 » Fri Nov 08, 2019 5:35 pm

Bob Emberger, thank you for all your persistent help in getting all of us the money from this settlement. I'm sure that without your due diligence, this may not have happened. I received my "final" payment today and I must say that I was very disappointed (not in you, but in this process). The amount I received, versus what I should have, is sickening. This is just to let people know that the checks are being distributed.
Lucy Carlson
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Re: Second distribution coming soon

Postby dwhisenant » Sat Nov 09, 2019 1:20 pm

I recieved the second and last check today, and it was much smaller than I had anticipated. My claim was for $664,000 and this last check was for $1,611.16.

It's over now.

Don
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Re: Second distribution coming soon

Postby remberger » Tue Nov 12, 2019 11:05 am

Here is an update from the Avaya attorney:

Mr. Emberger --

Apologies for the delay. I hope you had a restful Veteran’s day, to the extent you observe that holiday.

Thank you for checking in re the below. As you know, Avaya’s goal was to give as much as possible in the first distribution, with the second distribution being basically a small re-distribution of the uncashed checks. For this second round of distribution, after additional settlements reached and checks cashed, less than $1 million was available for distribution to about $258 million in claims. You are correct, the distribution percentage was about 0.3% before taxes.

The withholding was the same as last time, with the caveat that it may be different for an individual depending on if an individual moved, reached their FICA max, etc.

Individuals seeking more information about withholding may contact Prime Clerk at 855-212-2156 or via email: avayainfo@primeclerk.com.

Thank you --

RME notes:

(1) Per my post as of October 23, 2018 (yup last year) the federal tax was withheld at 22%, although Avaya never confirmed that percentage. If you want to check your percentages, you can go back to your W-2's for last year. If you want to get the exact dollar withholding for this year, you can contact Prime Clerk at the number above. I am confident you will get a W-2 by the end of January for this year's distribution.

(2) Per my post of July 23, 2019: "As of June 5, there was $2,040,005 remaining of the $57 million set aside to pay unsecured creditors (Avaya retirees and others). I presume that does not include the SAE Power settlement." The "less than $1,000,000" means that SAE Power may have gotten paid up to $1 million on its claim. We will never know. That would mean that the the SAE Power claim was valued at approximately $5 million. That would encompass the "$1,218,785.40 for SAE’s pre-petition Misappropriation Claim and the $200,000 in prejudgment interest on that amount" (Docket 2048) plus "SAE’s post-petition Misappropriation Claim is estimated at $6.41 for each Delta PSU sold containing SAE’s trade secrets after April 1, 2017." (Also Docket 2048), provided "Avaya Inc. (or any of the Debtors) [was] found to be liable to SAE for misappropriation of trade secrets"

(3) Many of the approved claim amounts were negotiated with Avaya and are confidential. We can only trust that the GUC Administrator did the due diligence on approving the amounts.

Bob Emberger
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