Intelligence

Financial Advisors to Comment on Bankruptcy

Reporter: Juliette Fairley

Publication: Finance Website

Contact: iq@fullyvested.com

Deadline: May 25, 2017 5:00 pm

I am seeking financial advisors to comment on the bankruptcy of Murphy and Durieau (M&D), a White Plains firm that had access to pools of liquidity in fixed income products, such as corporate, convertible, municipal, high yield, distressed and government securities Murphy & Durieau (M&D) sought protection from creditors in bankruptcy court last week. Signed by chief restructuring officer Joshua Rizack, the chapter 11 petition listed up to $10 million in assets and liabilities including a disputed $2,727,498.00 million owed to Janine May Scharff and $1,109,739.00 to Kirstin May Galvin who are both Greenwich residents classified as secured demand note (SDN) lenders in the court filings. The petition challenges Scharff and May’s claim that collateral accounts attributable to Scharff and May constitute their property and not M&D. “The importance of this dispute is that if they are right, all SDN Collateral Accounts are the property of the SDN Lenders not the chapter 11 estate and there would be insufficient assets to pay other non-subordinated creditors,” Rizack said in court filings. 1) Why is this dispute with SDN lenders important and significant for advisors? 2) How do you handle SDN lenders in your assets under management? 3) In your practice, who is listed as owner of SDN collateral accounts? The lender or the advisor and why is it set up this way?

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