As I understand the situation, the investment is frozen as it is now in bankruptcy court. All the paperwork I have (mailed & online statements) shows the investment still has value. However, IAW the court proceedings for bankruptcy, none of the investors can take distributions or cash out their accounts. In addition, 98% of the investors have agreed to a 24-month forbearance period during which we cannot take distributions. Can I use the agreement as an attachment to Form 5329 in order to avoid a penalty?
