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 31, 2008

 

STATUS UPDATE #19

 

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

 

LITIGATION

 

I will not comment on pending litigation other than to describe the procedural status of such matters.  Please review updates #1 through #18 for additional information.

 

STATE COURT ACTIONS

 

The discovery process has begun in the State Court Action.  Trial is currently scheduled to begin no earlier than April 2009. 

 

BANKRUPTCY COURT ACTIONS

 

The major litigation in Bankruptcy Court is the Disbursement Motion, the Greenwich et al Adversary and Preferences.

 

DISBURSEMENT MOTION

 

In May, 2008 the Bankruptcy Court decided the Disbursement Motion.  Greenwich requested the Bankruptcy Court to reconsider certain elements of its decisions.  The Court did reconsider certain elements.  The more important elements decided are

 

·         Greenwich has a contingent indemnity claim.

·         The Trustee must set aside $2,000,000 from funds received, if any, from ABFS 2003-2 Inc. which may be used to pay the contingent indemnity claim of Greenwich once the claim is determined in the Greenwich et al Adversary.

 

GREENWICH ET AL ADVERSARY

 

Greenwich, Ocwen, the Berkshire Group and Michael Tricky have each filed Answers to the Greenwich et al Adversary.  Each party denies substantially all allegations.  The discovery process has been quite intense over the past several months and is expected to be completed this fall.  In addition, as part of this litigation Greenwich has sued George L. Miller both personally in his individual capacity and also in his representative capacity as Chapter 7 Trustee.  A trial date has not been set by the Bankruptcy Court. 

 

PREFERENCES

 

See status Update #13 for more information.

 

SUMMARY

 

I still receive numerous telephone calls regarding the same issues.  I will try to summarize these issues in plain language.