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]

 

 

January 9, 2006

 

STATUS UPDATE #4

 

NOTE: The Statue Updates are cumulative.  Please read all four updates.

 

Case Administration

 

I have responded to over 3,800 telephone calls and 5,000 email responses.  I must emphasize that this is a very labor intensive process.  It is also one of my duties and I have and will continue to  respond to each future telephone call and correspondence.  The majority of the calls request the same information in Status Update #3.  Please read that update.  A supplement to the list of answers to frequently asked questions are:

 

a.)    The liquidation process will take at least 2 years.

b.)    I have filed only one lawsuit and have engaged one other law firm to commence an investigation.

c.)    Form 1098 Mortgage Interest Statements will be mailed in January.

d.)   Form W-2 Wage and Tax Statements have been mailed.

e.)    The secured creditor Greenwich Capital Financial Products, Inc. (“Greenwich”) and the Indenture Trustees of the Collateralized Noteholders do not find any of my proposals to liquidate the assets acceptable.  At present there are de minimus assets available to unsecured creditors and I cannot liquidate secured assets without an agreement.

 

Status of Liquidation

 

Since the Status Update #3 very few assets have been liquidated.  Greenwich has an outstanding first position secured loan of approximately $35,000,000 plus interest and costs.

 

I have abandoned the Furniture and Fixtures because there would not be any benefit to unsecured creditors and the estate was incurring expenses to maintain these assets.

 

At present, the only assets which could yield any significant distribution to unsecured creditors are the Litigation Assets.

 

Litigation Assets

 

Greenwich has a security interest in the Litigation Assets, except for “bankruptcy causes of action”.  At present ASK Financial is investigating these matters.  I expect to have certain lawsuits filed in the near future but cannot quantify any benefit at this time.

 

A complaint was filed described as Short Seller Litigation on December 30, 2005.  The outcome or probability of success is too early to determine.

 

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