Interim managers at USA Capital, a bankrupt private lender with $962 million in investor money, said Monday that they are preparing to make partial payments to investors.

In a statement, USA Capital said it will announce the total amount of the proposed payouts by Friday.

The company said it will urge Bankruptcy Judge Linda Riegle to approve the payout to investors at a hearing Aug. 4.

USA Capital also plans to ask Riegle for permission to make monthly payouts to investors.

While not disclosing the amount that will be distributed to investors, USA Capital's motion seeks court approval to distribute "a substantial portion of the funds held in the collection account," which was $93 million on June 30.

USA Capital solicited money from individual investors and typically used the money to make loans to developers. Investors were attracted by promises of double-digit interest rates and the relative security of having real estate as collateral for the loans.

The company filed for Chapter 11 bankruptcy, which allows it to continue operation, on April 13. Since then, the company has disclosed that many of its 115 loans are past due. USA Capital continued to make monthly payments, regardless of whether the loan was performing.

Thomas Allison, chief restructuring officer at USA Capital, said in a statement that his top priority is "to resume payments to investors who are owed money by USA Capital."

USA Capital said it will mail account statements to 3,600 so-called direct lenders, those who bought fractional interest in mortgage loans, so-called trust deeds. In addition to those investors, about 3,200 investors entrusted their money to two funds that bought portions of trust deeds.

In determining how much to pay each direct lender, Allison will deduct the amount that the direct lender may have been overpaid for a nonperforming loan, according to the motion signed by attorney Jeanette McPherson.

"It makes little sense for an investor to receive a distribution when it owes an obligation to USA (resulting from monthly payments on nonperforming loans)," the motion said.

Investors in the funds will receive money from excess cash in the funds.

"It is now over four months since fund members have received a distribution, and many are now suffering the consequences of losing their only source of income," the motion said.