Boyce Hydro bankruptcy fund has $3 million to $4 million, but 6,000 claims
Attorney who will disperse money was hoping there would be more in the fund
MIDLAND COUNTY, Mich. (WJRT) - The man who will oversee the distribution of money from a bankruptcy fund in the wake of the Edenville Dam disaster provided new information about the money available to victims on Tuesday.
Boyce Hydro, the company that operated the dams, filed for bankruptcy shortly after the historic flood last year. The money set aside for victims won’t go very far if all of the claims currently on file are valid.
“In the bankruptcy process, there have already been almost 6,000 claims filed,” said Scott Wolfson, the attorney who has been appointed the liquidating trustee for the Boyce Hydro bankruptcy plan.
Most of those 6,000 claims are from flood victims. Wolfson said once he was once he became involved with the Boyce Hydro bankruptcy plan, he wanted to tour the area that was impacted to get a better feel for what happened in Midland, Gladwin and Saginaw counties.
“The idea I had about how much territory or land it covered was just dead wrong. I kept driving and driving and driving, I couldn’t believe the miles and miles of devastation,” he said.
The bankruptcy fund consists of insurance proceeds, Boyce Hydro’s assets and the money obtained from the condemnation sale of the dams. It has netted a few million dollars.
“Between $3 million and $4 million in cash, but there are going to be ongoing expenses as we go forward that will impact that amount,” Wolfson said.
He believes real estate surrounding the dams will eventually be sold, which will boost the fund total. But it most likely won’t produce any big payouts to the thousands of flood victims.
“When I was asked to get involved with this, I was hoping to see insurance proceeds and other numbers that had another zero or two on them, but this is the reality of the world we live in and we will do the best we can to distribute them fairly,” Wolfson said.
He still wants to hear from people who were affected by the floods.
“If folks have not made a claim, they have damage, we will be putting together a claims process and they will have the opportunity to file a claim,” Wolfson said.
Its not clear at this point when these funds will begin to be distributed to the flood victims and other creditors.
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