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]

 

 

July 5, 2006

 

STATUS UPDATE #8

 

NOTE: The Status Updates are cumulative.  Please read all eight updates.

 

Case Administration

 

I have now responded to over 5,700 telephone calls and 7,200 emails.  Over 21,306 proofs of claims have been recorded to date.  The Clerk of the Bankruptcy Court continues to process Proofs of Claims.  I will advise in a future Status Update when all claims are posted.  If you have questions regarding proofs of claim, I recommend you have your attorney research your questions.

 

A supplement of answers to the list of frequently asked questions are:

 

a.)    Greenwich claims they are still owed in excess of $3.4 million.

 

b.)    There remains only 6 IO Strips which may be collateral of the secured lenders and the Collateralized Noteholders which have not been liquidated.

 

c.)    I do not anticipate that this Bankrupt Estate will be liquidating any IO Strips to the benefit of the Collateralized Noteholders.  Any disposition/distribution on the IO Strip collateral will be handled by Greenwich. 

 

d.)   There are approximately $700,000,000 in Proofs of Claims filed.

 

e.)    Where we are – At present there are no assets available for distribution to general unsecured creditors.

 

f.)     Where we are headed – I have several law firms investigating if anyone damaged the company and the validity of claims against third-parties.

 

g.)    Will there ever be a distribution – Only if there are lawsuits with significant monetary claims and I am successful in the litigation and collect substantial damages.

 

h.)    How long – The litigation process is slow.  If the claims are large, the claims will be vigorously defended.  The process will unfortunately take years.

 

i.)      I will not answer questions on potential or pending litigation as it may jeopardize the outcome.

 

Disposition of Residual Interests (IO Strips)

 

On June 28, 2006 Greenwich conducted a public auction and liquidated certain residual interests in 13 securitization trusts.  Greenwich applied approximately $4.3 million to their outstanding debt.