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]

 

 

August 19, 2009

 

 

STATUS UPDATE #23

 

NOTE: The Status Updates are cumulative.  Please read all twenty-three updates.

 

BANKRUPTCY COURT ADVERSARY

 

Discovery has been completed.  Each Defendant has filed a summary judgment motion seeking judgment in its favor.  In layman’s terms this means that the Defendants are attempting to avoid a trial at which the court would hear the facts as presented through the witnesses and the documents on which we base our claims.  If the court were to grant those motions we would not have a trial on the facts that support our claims, meaning in essence that we would lose.  The Trustee is opposing those summary judgment motions and his response in opposition will be filed by September 14, 2009.

 

STATE COURT LITIGATIONS

 

Discovery is complete.  Each of the Financial Institution Defendants has filed a summary judgment motion seeking judgment in its favor.  In layman’s terms, this means that the Defendants are attempting to avoid a trial at which a jury would hear and consider the facts upon which our claim against the Financial Institutions is based.  The Financial Institution Defendants claim that there are no disputed factual issues that need to be decided by the jury and that the court should enter judgment in their favor and against the Trustee as a matter of law.  If the court were to grant these motions, it would mean that we would lose.  The Trustee is opposing those motions and his response in opposition will be filed by August 24, 2009.      Judge Mark I. Bernstein has RESCHEDULED THE TRIAL FOR 9:30 A.M. OCTOBER 26, 2009.

 

The Trustee has settled with the Law Firm Defendant for $20,000,000 (“Law Firm Settlement”).  Greenwich claims that all proceeds from the Law Firm Settlement are due to Greenwich.  The Trustee disputes that the Trustee or Estate has any obligation to Greenwich.  The Trustee’s position is that the Law Firm Settlement is made available for creditors of the Estate.

 

ARBITRATION

 

            The Trustee has filed an Arbitration Claim against the Debtor’s former independent certified public accountants (“CPA Firm”) alleging damages were caused by the CPA Firm.  The Arbitration process is on-going and the Arbitration date has not been scheduled.