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]



November 1, 2005



Case Administration


I have responded to thousands of phone calls, and letters and e-mails from creditors and will continue to do so.  Generally my responses are within 48 hours of contact.  This is a very labor intensive process for me.  I must ask your indulgence and will list answers to frequently asked questions:


1.)    The liquidation process will take at least a year unless I determine to pursue litigation, then the process will take longer.


2.)    I cannot estimate the amount of any distribution to creditors, nor can I estimate the timing of any interim distribution or final distribution to creditors.  I can say there will be no distributions in the next six months.  Please monitor this web site for developments.


3.)    I cannot give you any financial advice as to third parties wishing to purchase your ABFS notes.


4.)    I cannot give you any tax advice if any of your potential investment losses or notes losses are tax deductible.  See your tax advisor.


5.)    U.S. Bank N.A., Wells Fargo Bank N.A., and Law Debenture Trust Company of New York filed Proofs of Claims for the Unsecured Note Holders, 2004 Senior Collateralized Notes and 2003 Senior Collateralized Notes, respectively these Proofs of Claim do not include any identification of individual noteholders.  Therefore, I am unable to determine if an individual creditor is listed in these Proofs of Claim. Contact the Indenture Trustee with your requests.


6.)    During the Chapter 11, CPT was the claims agent.  I have no funds to pay a claims agent and the Indenture Trustees would not permit the release of any assets to employee a claims agent.  Therefore, the Clerk of the Bankruptcy Court will process all claims.  There are over 20,000 creditors.  I do not know how many claims were filed but it will take several months for the claims to be docketed.  Accordingly, you

will not have any capacity to determine if your claims were received by the Clerk in the near future.


7.)    If you have not filed claims and wish to do so, you are a late filed claim.  Please contact an attorney to file the appropriate pleadings for acceptance of late filed claims. I cannot advise you on this issue.


8.)    If you move or change addresses, please file an amended Proof of Claim with the Clerk, not with the Trustee.




Chapter 11 Professional Fee Claims


I have settled all my objections to the Chapter 11 Professional Fee Claims.  I did not object to the Examiner’s Fee or his professionals’ claims.


The key elements of the settlement are that the professionals have aggregate allowed claims which total, $9,182,429 of which 75% or $6,886,822 retains its Chapter 11 administrative priority and 25% or $2,295,607 is deferred until the unsecured creditors are paid $60,000,000. 


Should you have any questions on the distribution priorities of the Bankruptcy Code, please consult an attorney.


Status of Liquidation


As of this date, I have liquidated over $45,000,000 in assets and paid Greenwich Capital Markets, LLC (“Greenwich”) a substantial portion of these proceeds.  Greenwich has an outstanding first position secured loan of approximately $35,000,000 plus interest and costs.


The primary assets to be liquidated are the Interest Only (“I/O”) Strips and Miscellaneous Assets.  I have made numerous proposals to liquidate these assets Greenwich and the Indenture Trustees of the Collateralized Noteholders.  None of my proposals have been acceptable to these parties.  In addition to the I/O Strips, the Miscellaneous Assets are:


                        Other Mortgage Assets           $ 1,800,000  

                        Furniture and Fixtures                  200,000

                        Other Assets                                 600,000

                                                                        $ 2,600,000


I estimate the liquidation of the above assets, including I/O Strips, will be sufficient to pay Greenwich debt.  However, I cannot estimate, at this time, the amounts left for any other creditors.


Litigation Process


I am investigating possible litigation against various third parties.  I am in the process of performing due diligence to determine if I have viable causes of actions.  I have engaged the law firm of Obermayer Redman Maxwell & Hippel to assist me in the review of the conduct of the Officers and Directors of ABFS.  I have engaged ASK Financial to investigate bankruptcy causes of actions pursuant to Section 547 (preferential transfers) of the Bankruptcy Code. 


If I determine that the pursuit of litigation could result in a meaningful distribution to creditors, my experience is that the litigation I am considering would take a long time to resolve.  For example, due diligence usually takes at least 6 months, discovery prior to trial at least 6 months, trial and decision from judge at least 6 months, and potential appeals at least 1 to 2 years.  The process, absent settlement, could take as long as 3 years.


I noted in the Status of Liquidation section that the liquidation of all tangible assets would most likely pay Greenwich in full and result in potential distribution to creditors.  I CANNOT ESTIMATE THE DISTRIBTUION TO ANY OTHER CREDITOR.