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]

 

 

May 8, 2006

 

STATUS UPDATE #7

 

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

 

Case Administration

 

I have now responded to over 5,100 telephone calls and 6,800 emails. Over 15,344 proofs of claims have been recorded to date. I will be unavailable for questions from May 9, 2006 through May 31, 2006. Please do not call or email me during this period. I will respond to calls and emails beginning June 1, 2006.

A supplement to the list of frequently asked questions are:

a.)    Greenwich has decided to dispose of certain residual interests. The disposition date is June 15, 2006.

b.)    Collateralized Noteholders are represented by the IT’s, their contact information is located in Status Update #2. If you are a Collateralized Noteholder, please contact the IT’s if you have questions.

c.)    At present, I estimate that any substantial distribution to unsecured or undersecured creditors would be the result of litigation assets.

d.)   If you change you name or address you must file an Amended Proof of Claim with the Clerk of the Bankruptcy Court, District of Delaware, 824 Market Street, 3rd Floor, Wilmington, DE 19801.

Disposition of Residual Interests (IO Strips)

I have been notified that Greenwich is proceeding with a disposition of certain residual interests in 13 securitization trusts. This disposition of certain residual interests is being conducted by Greenwich. For information concerning this disposition of certain residual interests by Greenwich, you MUST contact Greenwich’s sales advisor, Sean Hundtofte of Obsidian Finance Group LLC at (503) 245-8800, [email protected]. The Chapter 7 Trustee is not conducting the disposition of the subject residual interests and YOU SHOULD NOT CONTACT THE CHAPTER 7 TRUSTEE CONCERNING THE DISPOSITION.

Litigation Assets

The only litigation currently pending is the Short Seller Litigation. Demand letters for preferences and fraudulent conveyances have been sent to the creditors. An application to perform additional investigations has been filed for Kaufman, Coren & Ress, P.C. and Obermayer Rebman Maxwell & Hippel. This application allows these law firms to:

a.)    Review, investigate and pursue, in any/all appropriate forums, the D&O Litigation;

b.)    Review, investigate and pursue, in any/all appropriate forums, claims on behalf of the Trustee and the Estates to recover damages against banks, financial institutions, indenture or other trustees, financial or other advisors, lenders, professionals (excluding the Debtor’s auditors which shall be subject to further application), and other persons or entities as directed by the Trustee (including claims based on both pre-petition and post-petition agreements, obligations, actions, inactions or conduct, and including claims in the nature of setoff or for subordination or similar relief);and,

c.)    Review, investigate and defend actions brought against the Estates and/or the Trustee as representative of the Debtors’ Estates on a case-by-case basis if requested by the Trustee.

Obermayer Rebman Maxwell & Hippel is still investigating the conduct of the Officers and Directors and have not made any recommendations to the Bankruptcy Trustee at the present time. Please do not ask me about any pending litigation because I will have NO COMMENT.