Money Tree investors' initial distribution expected to be 10% or less

By Caroline Salls

Pittsburgh, Oct. 24 - Money Tree Inc.'s Chapter 11 trustee expects the initial distribution to investors who are general unsecured creditors to be equal to or less than 10% of their claims, according to a Tuesday filing with the U.S. Bankruptcy Court for the Middle District of Alabama.

Chapter 11 trustee S. Gregory Hays said he hopes to file a plan of liquidation by Nov. 30. The trustee and Money Tree's official committee are currently drafting the plan, the filing said.

Hays said the company's estates currently have $10.8 million in cash. Its remaining assets are an "insignificant amount" of office furniture and equipment that will be sold after Money Tree's home office closes.

In addition, the trustee said there are pending recoveries for contracts, refunds and possible deposit recoveries, as well as various litigation claims against third parties.

According to the filing, the Money Tree debtors still have eight employees, but that staff will be reduced over the next few weeks as remaining issues are resolved.

Money Tree, a Bainbridge, Ga., consumer loan company, filed for bankruptcy on Dec. 16, 2011. The Chapter 11 case number is 11-12254.

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