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AndyG

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Posts: 32
Reply with quote  #1 
I got an email from Bullion Universe.  Here is the body of the email:

 

Dear Name Withheld,

Coming Soon!

 

 

 

 A website for self-directed bullion transactions

Profits from this website will be shared with creditors of the Bullion Direct, Inc. Chapter 11 Bankruptcy (Case No. 15-10940) under Article 4.5(c) of the May 23, 2016 Asset Purchase Agreement.  

 

 

The Bullion Universe website has been developed to provide ease of transactions while assuring the security of customer funds and precious metals:

 

• The operating business model does not provide for the use of customer funds or precious metals for any reason other than fulfilling customer orders.  

• Precious metals are held in a Depository by Brinks, Inc. until sold and delivered to buying customers. 

• Customer funds are held at BBVA Compass Bank in an account exclusively for Bullion Universe customer funds and separate from any business operation accounts.
  

• Precious metal products and/or Funds must be deposited in the Customer Account in advance of placing orders to greatly mitigate trade default and market related risks.

• Bullion Universe does not engage in market-making or trading activities and therefore normal market related risks are mitigated.

• All accounts will be subject to annual internal and external review by independent auditors.

 

 

 

Your participation and support will help regain the participation of all 60,000 customers that accounted for over $1.5 Billion in successfully completed transactions during fifteen years of Bullion Direct, Inc. operation.

 

 

The Bullion Universe website is owned and operated by Platform Universe LLC, a Texas limited liability company that was formed to develop and deploy this online order-matching platform under U.S. Patent number 7,584,135.   

 

Copyright © Platform Universe LLC | dba Bullion Universe | All Rights Reserved

6700 Woodlands Pkwy | STE 230-214 | The Woodlands | TX | 77382

Don't want this?
Click here to unsubscribe.

BullionUniverse.com


End Body of email. 

I especially like the one line:

Your participation and support will help regain the participation of all 60,000 customers that accounted for over $1.5 Billion in successfully completed transactions during fifteen years of Bullion Direct, Inc. operation.

What about the unsuccessful transactions.  Heck, I didn't even attempt to buy anything.  I just put some money into an account and Bullion Direct went bully up before I even attempted a transaction. 


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JG

Administrator
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Posts: 960
Reply with quote  #2 
Quote:
Originally Posted by AndyG

I especially like the one line:

Your participation and support will help regain the participation of all 60,000 customers that accounted for over $1.5 Billion in successfully completed transactions during fifteen years of Bullion Direct, Inc. operation.


After a lot of time trying to figure out what that meant, I think that is a convoluted way of saying: "Bullion Direct had 60,000 customers, and about 55,000 or so of them never lost any money. So if you -- as someone who lost money -- are able to trust us, we may be able to convince them to become customers, too."

Although I cannot fathom why Charles' mother didn't respond to me, I do believe this company does have potential (and people will be watching it like a hawk for any signs of problems).

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Dcscott

Member
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Posts: 50
Reply with quote  #3 
Yeeaah. If BD/bull universe is willing to give me triple back my investments until I'm fully repaid, then , I might consider it. But until then they are nothing but thieves in my book and deserve to be thrown under a jail until they die.
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harley_52

Senior Member
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Posts: 130
Reply with quote  #4 
I see this as just another problem to be overcome before this entire fiasco can be ended.  At this point, I have zero hope of ever recouping the nearly $10K this worthless scum stole from me.  The main thing this action does "for" me is that it further complicates the issue of how to handle the tax implications of my loss.  If my loss is now an unintentional "investment" in this new company, how can I determine my ultimate and final loss?  The maximum would be the total amount of my loss, but now I might stand to recoup a few dollars of it, so I can't give the IRS an exact number, nor any guarantee that number won't change.  I'm quite sure that by now, what little money remained when bankruptcy was declared has been split up and shared by the lawyers and "experts" who oversaw the fleecing process.  What a mess....
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PPH

Junior Member
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Posts: 1
Reply with quote  #5 
I never received this e-mail, which suggests that their creditor contact information is not complete. I also never received a ballot.

Anybody else have the same problem?
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napolm

Junior Member
Registered:
Posts: 11
Reply with quote  #6 
I received emails. No ballot
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tboll

Senior Member
Registered:
Posts: 292
Reply with quote  #7 
Did you notice the FEES page:
http://www.bullionuniverse.com/aboutUs.do?view=services#AccountFees

Am I reading this right...
>$75 (plus) to deposit a product?  Doesn't sound too profitable to the seller if he is just selling a few ounces of silver and may not be profitable even for an ounce of gold depending on how much you sell it for over cost.
>2-4% commission on sale of product?
>$50 (plus) to deliver?
>Free storage for 30 days then $0.45/mth for gold. (corrected)

When one can buy gold for $30 over spot from JMBullion and get free delivery, I can't imagine why anyone would pay more to buy metal from BU.  Thus the seller would have to absorb the commission cost as well as the shipping cost (both to and out of BU).  If spot price is $1280, that would  be $75 deposit fee, $25-50 commission fee, and $50 delivery fee for a total of $150-175 total transaction cost.  I'm not saying that it's fair for the seller to incur all the costs, but he's competing against JMBullion, etc. so he will have a difficult time selling at spot when there are all the additional transaction fees that have to be paid.


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spainte

Member
Registered:
Posts: 40
Reply with quote  #8 
Quote:
Originally Posted by PPH
I never received this e-mail, which suggests that their creditor contact information is not complete. I also never received a ballot.

Anybody else have the same problem?


I didn't receive either notice or ballot. Is Joe Martinec still on the hook for maintaining these lists?
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JG

Administrator
Registered:
Posts: 960
Reply with quote  #9 
Quote:
Originally Posted by spainte
I didn't receive either notice or ballot. Is Joe Martinec still on the hook for maintaining these lists?


At some point it should change, but last I heard, Joe Martinec hasn't given up responsibility for maintaining the lists.

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spainte

Member
Registered:
Posts: 40
Reply with quote  #10 
Quote:
Originally Posted by tboll
Did you notice the FEES page:
http://www.bullionuniverse.com/aboutUs.do?view=services#AccountFees

Am I reading this right...
>$75 (plus) to deposit a product?  Doesn't sound too profitable to the seller if he is just selling a few ounces of silver and may not be profitable even for an ounce of gold depending on how much you sell it for over cost.
>2-4% commission on sale of product?
>$50 (plus) to deliver?
>Free storage for 30 days then $45/mth for gold.

When one can buy gold for $30 over spot from JMBullion and get free delivery, I can't imagine why anyone would pay more to buy metal from BU.  Thus the seller would have to absorb the commission cost as well as the shipping cost (both to and out of BU).  If spot price is $1280, that would  be $75 deposit fee, $25-50 commission fee, and $50 delivery fee for a total of $150-175 total transaction cost.  I'm not saying that it's fair for the seller to incur all the costs, but he's competing against JMBullion, etc. so he will have a difficult time selling at spot when there are all the additional transaction fees that have to be paid.

PS:  and if it takes you 6 mths to sell it, don't forget about the extra $270 storage fee.


45 cents per month. They should really put $ 0.45 to be clear.

Attached Images
jpeg bd.jpg (16.18 KB, 2 views)

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mindmelter

Junior Member
Registered:
Posts: 29
Reply with quote  #11 
Quote:
Originally Posted by tboll
Did you notice the FEES page:
http://www.bullionuniverse.com/aboutUs.do?view=services#AccountFees

Am I reading this right...
>$75 (plus) to deposit a product?  Doesn't sound too profitable to the seller if he is just selling a few ounces of silver and may not be profitable even for an ounce of gold depending on how much you sell it for over cost.
>2-4% commission on sale of product?
>$50 (plus) to deliver?
>Free storage for 30 days then $0.45/mth for gold. (corrected)

When one can buy gold for $30 over spot from JMBullion and get free delivery, I can't imagine why anyone would pay more to buy metal from BU.  Thus the seller would have to absorb the commission cost as well as the shipping cost (both to and out of BU).  If spot price is $1280, that would  be $75 deposit fee, $25-50 commission fee, and $50 delivery fee for a total of $150-175 total transaction cost.  I'm not saying that it's fair for the seller to incur all the costs, but he's competing against JMBullion, etc. so he will have a difficult time selling at spot when there are all the additional transaction fees that have to be paid.



I wonder if there will be an option to insure and ship the the product ourselves instead of paying $75 for their pre-paid shipping label?












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BOB

Junior Member
Registered:
Posts: 21
Reply with quote  #12 
At the top of the Bullion Universe email it says, "Profits from this website will be shared with creditors of the Bullion Direct, Inc. Chapter 11 Bankruptcy (Case No. 15-10940) under Article 4.5(c) of the May 23, 2016 Asset Purchase Agreement." Does anyone have any idea how exactly those profits will be shared? Will those of us like me who had paid orders that were never filled start getting checks from BU? 
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JG

Administrator
Registered:
Posts: 960
Reply with quote  #13 
Quote:
Originally Posted by BOB
At the top of the Bullion Universe email it says, "Profits from this website will be shared with creditors of the Bullion Direct, Inc. Chapter 11 Bankruptcy (Case No. 15-10940) under Article 4.5(c) of the May 23, 2016 Asset Purchase Agreement." Does anyone have any idea how exactly those profits will be shared? Will those of us like me who had paid orders that were never filled start getting checks from BU? 


Here is section 4.5(c) (from Docket 175):

(c) Contingent Payment Schedule. Subject to the early termination provisions
in Section 4.5(e), BDI or its assigns shall be eligible to receive the Contingent Payments during
the Contingent Payment Period. Buyer will notify BDI upon Buyer’s commencement of
Business operations, which shall mark the beginning of the Contingent Payment Period. Buyer
shall commence Business operations within one (1) year of the Closing Date. During the
Contingent Payment Period, the Contingent Payment Percentage for each Contingent Payment
Year will calculated as followings:
“Contingent Payment Year” “Contingent Payment Percentage”
Year 1 80.00%
Year 2 and 3 60.00%
Years 4 through 7 50.00%
(i) “Contingent Payment Period” means a seven-year period
beginning on the Commencement of Business operations and ending seven years later.
(ii) “Calculation Period” means each 365 day-year of the Contingent
Payment Period.

The English version: 80% of any profit the first year, then 60% of any profit in the second/third year, and then 50% of any profit in the next 4 years will go to the trust for creditors (where I assume any professional fees will first be deducted). The "early termination" piece (detailed in 4.5(e)) basically allows them to stop paying if they have paid as much as there are claims.

Of course, the disclaimer I occasionally include applies: this is my interpretation as a non-lawyer, and is not intended to be legal advice. As a non-lawyer, I do not have the training, for example, to determine the legal meaning of "will calculated as followings", or figure out what the word shall means in legal documents.

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tboll

Senior Member
Registered:
Posts: 292
Reply with quote  #14 
Hi JG,
I have a question...
  Are the creditors "shareholders" of the new company, meaning we will continue to own a portion of the company even after the seven year contingent payment period or is the new BU owners totally free of their obligation to the old BDI creditors after the 7 years?

Although I've never owned my own business, I've always had the impression that the early  years are pretty lean and that most (or all) of the revenue would end up covering operating and unexpected startup costs.

Is this strictly a "commission" (on profits only) deal for the creditors with no long-term equity in the new company?
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JG

Administrator
Registered:
Posts: 960
Reply with quote  #15 
Quote:
Originally Posted by tboll
Hi JG,
I have a question...
  Are the creditors "shareholders" of the new company, meaning we will continue to own a portion of the company even after the seven year contingent payment period or is the new BU owners totally free of their obligation to the old BDI creditors after the 7 years?

Although I've never owned my own business, I've always had the impression that the early  years are pretty lean and that most (or all) of the revenue would end up covering operating and unexpected startup costs.

Is this strictly a "commission" (on profits only) deal for the creditors with no long-term equity in the new company?


Creditors are not shareholders of the new company. Once that 7 years is up, creditors will not get anything from Bullion Universe.

The idea behind this is that in theory it should work the same as if someone unrelated to Charles McAllister (rather than his mom and step-dad) bought the company. Neither Bullion Universe nor the owners are legally responsible for the Bullion Direct debt (nor is Charles, but that could well change, but he isn't a part owner of the new company).

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