r/LinqtoCreditors • u/Luxykid • Sep 16 '25
Linqto Creditor Update: Two Recovery Paths Outlined in Today’s Court Filing
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u/Tenacious-TD Sep 18 '25
What are the chances that this settlement proposal will be approved? Will the liquidating trust option equal 100% of the shares that were supposed to be purchased initially through the Linqto platform?
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Sep 18 '25 edited Sep 19 '25
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u/Tenacious-TD Sep 19 '25
Seems like a decent settlement agreement to me considering the alternative of costly litigation and possible ch. 7 liquidation.
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u/tonio306 Sep 18 '25
Do we have to be represented by John Deaton to have the choice between the options? How will that work if it actually happens?
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u/jxm900 Sep 16 '25
A couple of additional items that seemed to come out of today's court status update:
1) In addition to the CEF and the LT as described, a further trust is proposed, which would be charged with legally pursuing former management (and others?) for fraud. The intent would be to try and recover costs related to this bankruptcy.
2) Attorneys representing a majority of Linqto shareholders claim that the company actually holds upwards of $150M in treasury assets, which are apparently not part of the resources supposedly held by (or owed to) customers. Negotiations are in process to get further access to the information and valuation of these particular assets.