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]

 

 

February 16, 2006

 

STATUS UPDATE #5

 

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

 

Case Administration

 

I have responded to over 4,200 telephone calls and 6,000 emails.  Accordingly, a good part of my day is responding to creditors.

 

A supplement to the list of frequently asked questions:

 

a.)    The Form 1098 Mortgage Interest Statements were mailed on February 14, 2006.

b.)    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.

 

c.)    I can give NO tax or financial advice.

d.)    No Form 1099-INT will be mailed.  If you filed a proof of claim and included accrued interest for 2005, please see your tax advisor on if or how you should report the accrued interest income for tax purposes.

 

e.)    Anyone who calls or emails me receives the same information contained in these status update reports.

 

Status of Liquidation

 

Since Status Update #4, approximately $5,000,000 in assets have been liquidated and paid to Greenwich.  Collections on I/O strips amount to $4,700,000.  I abandoned the Furniture and Fixtures.  Greenwich auctioned these assets and received approximately $200,000.

 

Greenwich has an outstanding first position secured loan of approximately $31,000,000 plus interest and costs.

 

Litigation Assets

 

ASK has commenced the litigation of Section 547, Preferences and Section 548, Fraudulent Conveyance.  Demand letters have been mailed.  Lawsuits will follow.