George L. Miller, Trustee

Eight Penn Center, Suite 950

1628 John F. Kennedy Boulevard

Philadelphia, PA  19103

 

Phone:  (215) 561-0950

Fax:  (215) 561-0330

Email:  [email protected]

 

 

 

September 27, 2005

 

STATUS UPDATE #2

 

Proofs of Claim

 

The bar date for Proofs of Claim expired September 16, 2005.  If you have not timely filed your claim, you should contact an attorney.  I do not have claim forms but they can be obtained from the following website www.deb.uscourts.gov The address for the Clerk of the Court is:

 

Clerk of the Bankruptcy Court

District of Delaware

824 Market Street

3rd Floor

Wilmington, DE 19801

 

Proofs of Claim (POC) were filed on behalf of various note holders by the U.S. Bank National Association, (“U.S. Bank”), and Law Debenture Trust Company of New York, (“Law Debenture”), and Wells Fargo Bank, National Association (“Wells Fargo”) in their respective capacities as Indenture Trustees.

 

If an Indenture Trustee has filed a POC on your behalf, do not file a duplicate claim. 

 

U.S. Bank National Association

 

U.S. Bank, as Indenture Trustee, has filed an aggregate POC in the amount of $521,648,268.21 on behalf of the holders of the Debtor’s Unsecured, Subordinated Investment Notes and Unsecured, Adjustable Rate Subordinated Money Market Notes (the “Unsecured Notes”) issued under Indentures dated as of April 27, 1994, October 19, 1995, July 1, 1996, May 27, 1997, October 20, 1998, October 15, 1999, October 30, 2000, October 16, 2001, October 3, 2002 and November 7, 2003.  This POC is based on information that the Debtor, as the paying agent and registrar under the Indentures, provided to the U.S. Bank, and the Bankruptcy Trustee cannot verify whether this POC includes the claims of any specific, individual creditors.

 

Law Debenture Trust Company of New York

 

Law Debenture, as Indenture Trustee, has filed a POC in the amount of $57,019,018.00 on behalf of the holders of the Debtors’ Senior Collateralized Notes issued under the Indenture, dated December 31, 2003 (the “2003 Indenture”).  The Bankruptcy Trustee cannot verify whether this POC includes claims of any specific individual Senior Collateralized Note Holders. The POC filed by Law Debenture identifies names and addresses where notices should be sent to them as being:

 

Law Debenture Trust Company of New York

Attn: Patrick J. Healy

767 Third Avenue, 31st Floor

New York, New York 100017

 

and

 

Pryor Cashman Sherman & Flynn LLP

Attn: Tina Niehold Moss, Esquire

410 Park Avenue

New York, New York 100022

 

Wells Fargo Bank National Association

 

Wells Fargo has filed POC’s in the Debtors case in the amount of $41,130,505 as of 12/31/04 on behalf of the holders of the Debtors’ Senior Collateralized Notes issued under the Indenture, dated as of June 30, 2004 (the “2004 Indenture”).  The Bankruptcy Trustee cannot verify whether the POC’s filed by Wells Fargo include claims of any specific, individual Senior Collateralized Note Holder. The POC’s filed by Wells Fargo identify the names and addresses to which notices should be sent to them as being:

 

Well Fargo Bank N.A.

Attn:  Julie Becker, Vice President

MAC N9303-120

Sixth Street & Marquette Avenue

Minneapolis, MN 55479

 

and

 

Kelley Drye Warren LLP

Attn: Mark Somerstein, Esquire

Joel Rublin, Esquire

101 Park Ave.

New York, New York 10178

 

 

 

Litigation Process

 

The Bankruptcy Trustee has substantially vacated the Debtor’s former office premises, placed all the Debtor’s books and records in storage and has secured the Debtor’s computer records. 

 

Among the remaining assets to be liquidated are 20 mortgage (residual Income Only Strips (“IO Strips”).  In my previous status report, I erroneously reported only 19 mortgage residuals.  I have engaged Boston Portfolio to value the IO Strips.  Boston Portfolio should complete its valuation in the near future which will help determine the method to be employed in obtaining value for the IO Strips.

 

Other assets remaining to be liquidated are:

 

Other Mortgage Assets        $1,900.000

Furniture and Equipment          200,000

Other Assets                             700,000

                                             $2,800,000

 

 

 

There has been no change in the remaining assets to be liquidated since the last Status Report because it has not been determined whether Greenwich Capital or the Bankruptcy Trustee will liquidate these assets.

 

The process of the liquidation of the IO Strips is currently under negotiations by Greenwich Capital, Senior Collateralized Note Indenture Trustees, (Wells Fargo and Law Debenture), and the Bankruptcy Trustee.

 

In addition to the remaining assets to be liquidated which are identified above, the Trustee may possess causes of action against various third parties and the Bankruptcy Trustee is in the preliminary stages of evaluating the feasibility of pursuing such litigation.

 

Investigation

 

The Bankruptcy Trustee has notified the insurance carriers of the Debtors’ Directors and Officers Insurance and Error and Omission Insurance of his intent to file claim(s).