Yesterday, a Nevada bankruptcy court conducted an eight-hour hearing that will decide the short-term future of a trio of bankruptcy petitions filed by TelexFree, Inc., TelexFree, LLC, and TelexFree Financial, LLC (collectively, "TelexFree"). There, lawyers for TelexFree, the Securities and Exchange Commission, and the U.S. Trustee squared off before U.S. Bankruptcy Judge August Landis to determine whether the bankruptcy would proceed at all, or, in the alternative, be transferred to Massachusetts or whether the allegations of fraud and criminal conduct warranted the appointment of an independent fiduciary as trustee. Additionally, testimony was taken from interim chief executive officer Stuart MacMillan, as well as interim chief restructuring officer William Runge and his associate Tim Meighan. While the government lawyers seek to halt the bankruptcy in its tracks while a civil enforcement action initiated by the SEC proceeds in Massachusetts, TelexFree lawyers have steadfastly maintained that, despite any malfeasance in its past, the company intends to reorganize and emerge a legitimate business. Ponzitracker covered the hearings in detail yesterday here.
The court has just released the audio from the hearings, and it is presented below. Please note that there are six parts (all times are in PST):
- Part 1 covers the time period of 9:47 A.M. to 10:08 A.M.
- Part 2 covers the time period of 10:27 A.M. to 11:55 A.M.
- Part 3 covers the time period of 1:19 P.M. to 1:25 P.M.
- Part 4 covers the time period of 1:25 P.M. to 1:26 P.M.
- Part 5 covers the time period of 1:28 P.M. to 4:00 P.M.
- Part 6 covers the time period of 4:00 to the close of the hearing (approximately 6:47 P.M.)
While the Court has provided the audio files, it is doubtful that a corresponding transcript will be released free of charge. Yesterday, Ponzitracker provided a live blog of the hearings until 4:00 P.M. PST. A quick review of the final minutes of the hearing reveals that the Judge plans to make a ruling on the motions by early next week. Interestingly, the TelexFree lawyer promised that, if the bankruptcy is left intact, "there is no question in my mind that there will be an aggressive pursuit of avoidance actions if necessary."
BehindMLM has put together a summary of the hearing.
The audio files are below: